RBI allows FIIs to buy up to 49 pc stake in Idea Cellular

Tags: News
Foreign institutional investors (FIIs) can now purchase up to 49 per cent stake in telecom operator Idea Cellular Ltd.

The FII limit in the company was 24 per cent earlier.

"... FIIs, through primary market and stock exchanges, can now purchase up to 49 per cent of the paid up capital of Idea Cellular Limited under the Portfolio Investment Scheme (PIS)," the Reserve Bank of India (RBI) said in release today.

The decision to increase the FII limit in the company has come after passage of resolution at the board of directors' level and a special resolution by the shareholders for enhancing the limit from 24 per cent to 49 per cent.

As per the data available on the BSE, FIIs held 19.51 per cent share in the company as of quarter ended March 2014.

Having agreed to increase the FIIs shareholding limit to 49 per cent, the downstream investment in the company would continue to remain on Idea Cellular, in compliance with FDI (foreign direct investment) policy and FEMA (Foreign Exchange Management Act) regulations.

FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).

RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.

Shares of Idea slumped 4.32 per cent to close at Rs 135.10 apiece on 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E-mail ID will not be published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

  • India’s festivals teach us to share our wealth and joy

    India is an aporia in its own true sense.

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

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture