Mumbai: The Reserve Bank of India (RBI) on Monday allowed foreign investors to hold up to 74 per cent paid-up capital in UPL Ltd under the portfolio investment scheme (PIS).
"...advised that FIIs/RFPIs can now invest up to 74 per cent of the paid up capital of UPL Limited under the Portfolio Investment Scheme," the apex bank said in a notification.
Shareholding by foreign institutional investors (FIIs) or registered foreign portfolios investors (RFPIs) in the company had gone below the revised threshold limit.
The decision to enhance the limit for foreign investment came after the board of the company passed special resolution, agreeing to raise the limit for purchase of its equity shares and convertible debentures by FIIs/RFPIs.
"Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," the RBI said.
FIIs, NRIs and PIOs (persons of Indian origin) can invest in primary and secondary capital markets in India through PIS.
The RBI monitors ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
Shares in UPL, on Monday, ended at Rs 335 apiece on the BSE, up 1.15 per cent from the previous close.