FIIs shareholding limit in CMC enhanced up to 35 pc

Tags: News
Foreign investors have been allowed to purchase up to 35 per cent shares in CMC Limited upon the permissible limit for such investments going below the trigger limit.

"...Foreign Institutional Investors (FIIs), through primary market and stock exchanges, can now purchase up to 35 per cent (revised from earlier 24 per cent) of the paid up capital of CMC Limited under the Portfolio Investment Scheme (PIS)," RBI said in a notification.

The decision follows passage of resolutions at the board of directors' level and a special resolution by shareholders at CMC Ltd, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by Foreign Institutional Investors (FIIs).

"...The foreign share holding by FIIs in CMC Limited 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 Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," RBI added.

RBI tracks ceilings on investments by FIIs, non-resident Indians and persons of Indian origin on a daily basis.

The cut-off limit has been set at two percentage points lower than the actual ceiling. As the net equity investment in a company reaches cut-off level, additional buying of shares require RBI's approval.

As per data available on BSE, FIIs held 21.83 per cent shares in CMC Ltd as of quarter ended March 2014.

Shares of the company rose 1.43 per cent to Rs 1,471.70 at the close on the BSE today.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Tighter disclosure norms will help public shareholders

    The Securities and Exchange Board of India (Sebi) has proposed changes in listing agreements between companies and stock exchanges, laying down manage

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Why UGC must focus on quality

In a vast country like India, where there are pressures ...

Rajgopal Nidamboor

The sum total of our conscious experience

All of us epitomise a multiplicity of conscious thoughts. This ...

Gautam Gupta

Don’t let success kill the essence of the concept

In 1999 when my mother started her own label, we ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture