The Reserve Bank of India (RBI) on Monday allowed foreign institutional investors (FIIs) and non-resident Indians (NRIs) to increase stake in Ess Dee Aluminium to up to 100 per cent and up to 24 per cent, respectively.
"...Ess Dee Aluminium Ltd. has passed resolutions to enhance the limit for purchase of its equity shares and convertible debentures by FIIs through primary market and stock exchanges up to 100 per cent and by NRIs/PIOs up to 24 per cent of its paid up capital, under the Portfolio Investment Scheme (PIS)," the RBI said in a notification.
FIIs, NRIs, and persons of Indian origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).
Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the bourses in India.
FII investment can be raised up to sectoral cap/statutory ceiling, subject to the approval of the board and the general body of the company passing a special resolution to that effect.
The apex bank also allowed the FIIs to raise their stake in Kajaria Ceramics to 40 per cent.
"RBI today notified that Kajaria Ceramics...to enhance the limit for purchase of its equity shares and convertible debentures by FIIs, through primary market and stock exchanges, under the PIS up to 40 per cent of its paid up capital," a separate filing said.
The foreign share holding by FIIs in Kajaria Ceramics has gone below the revised threshold limit stipulated under the extant FDI Policy, the RBI noted.
"Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," it said.
As of November 11, 2013, FIIs had a 24.25 per cent stake in Kajaria, according to BSE data.