FIIs shareholding limit in CMC enhanced up to 35 pc
May 22 2014 , Mumbai
"...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 Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," RBI added.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.