RBI allows increase in FII limit in Edelweiss Financial to 28%
Apr 03 2014 , Mumbai
"... Edelweiss Financial Services has passed resolutions at the Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by Foreign Institutional Investor (FIIs), through primary market and stock exchanges up to 28 per cent of the paid up capital," RBI said in release.
Hence, restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect, it said.
The permission has come under the Portfolio Investment Scheme (PIS) for Foreign Institutional Investors (FIIs).
RBI monitors the ceilings on investments by FIIs, non-resident Indians and persons of Indian origin on a daily basis.
The central bank has set a cut-off level that is two percentage points lower than the actual ceiling. After the net equity investment in a company reaches the cut-off level, additional share purchases require the RBI's approval.
As per data available on the BSE, FIIs held 22.63 per cent shares in the company as of December 31, 2013.
Shares of Edelweiss Financial rose 5.24 per cent to Rs 30.15 at the close on the BSE today.