RBI-Increase in Foreign investment limit/ceiling in an Indian Company under PIS-FIIs - M/s Jubilant FoodWorks Limited
April, 16th 2014
The Reserve Bank of India today notified that Foreign Institutional Investors (FIIs), through primary market and stock exchanges, can now purchase up to 55 per cent (revised from earlier limit of 49 per cent) of the paid up capital of M/s Jubilant FoodWorks Limited under the Portfolio Investment Scheme (PIS). M/s Jubilant FoodWorks Limited has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit from 49 per cent to 55 per cent for the purchase of its equity shares and convertible debentures by Foreign Institutional Investors (FIIs).
Further, the Reserve Bank notified that the foreign share holding by Foreign Institutional Investor (FIIs), in M/s Jubilant FoodWorks Limited have gone below the revised threshold limit stipulated under the extant Foreign Direct Investment (FDI) Policy. Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect.
The Reserve Bank has notified this under FEMA 1999, regarding raising of aggregate ceiling for investments by FIIs in Indian companies under Portfolio Investment Scheme (PIS).