Foreign Investment Limit in Edelweiss Financial Raised: RBI

Mumbai: Foreign investors can now invest up to 40 per cent of the paid-up capital in Edelweiss Financial Services, up from the earlier limit of 28 per cent.

"The foreign institutional investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 40 per cent of the paid-up capital of Edelweiss Financial Services Limited under the Portfolio Investment Scheme," the Reserve Bank of India (RBI) said in a notification.

The enhanced limit for such investment follows passage of resolutions at board of directors level and a special resolution by shareholders agreeing to up the limit from 28 per cent to 40 per cent for the purchase of company's equity shares and convertible debentures by FIIs.

FIIs, RFPIs, NRIs and PIO (persons of Indian origin) can invest in primary and secondary capital markets in India through the portfolio investment scheme.

As of quarter ended September 30, 2014, FIIs held a 22.61 per cent share in Edelweiss Financial Services, data from the BSE showed.

Shares in Edelweiss, on Wednesday, ended at Rs 53.45 apiece on the BSE, down 0.09 per cent from the previous close.