The Reserve Bank of India has today notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest from 20 per cent to 26 per cent of the paid up capital of M/s D.B.Corp Ltd. under the Portfolio Investment Scheme (PIS). The total foreign investment in the company from all sources i.e. Foreign Institutional Investors (FII)/Registered Foreign Portfolios Investors (RFPI)/Non-Resident Indians (NRI)/Foreign Direct Investment (FDI)/Persons of Indian Origin (PIO)/American Depository Receipts (ADR)/Global Depository Receipts (GDR) shall not exceed 26 per cent of the paid up capital of the company.

The Reserve Bank further advised that the foreign share holding by FII/RFPI/ NRI/FDI/PIO/ADR/GDR in M/s D.B. Corp Ltd. have gone below the revised threshold limit stipulated under the extant FDI Policy. Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect.

The Reserve Bank has stated that the company has passed resolutions at its Board of Directors’ level, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures. The purchases could be made through primary market and stock exchanges and would be subject to Regulation 5(2) & 5(3) of FEMA Notification No.20/2000-RB dated May 03, 2000 (as amended from time to time) and other terms and conditions stipulated by the Reserve Bank.

The Reserve Bank has notified this under FEMA 1999.

Ajit Prasad
Assistant Adviser

Press Release : 2015-2016/2758