FIIs allowed to buy up to 40% in Maruti Suzuki
Mumbai, Sep 14
The Reserve Bank of India has allowed foreign investors to invest up to 40 per cent of the paid-up capital in Maruti Suzuki India under the Portfolio Investment Scheme.
The foreign shareholding by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolio Investors (RFPIs) in Maruti Suzuki India Limited have gone below the revised threshold limit, RBI said in a release.
"Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," the RBI said.
RBI said Maruti Suzuki has passed resolutions at its Board of Directors' level and a special resolution by shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.
The purchases could be made through primary market and stock exchanges, it said.
As per data available on BSE, FIIs held 21.75 per cent in Maruti Suzuki as of quarter ended June 2015.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.
RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis and has fixed the cut-off points two percentage points lower than the actual ceiling.
Maruti Suzuki shares closed at Rs 4,320.15 apiece on BSE flat from previous close on BSE today. — PTI
