‘FIIs can buy up to 74% of Airtel’s paid up capital’
4 July 2014 11:13 PM GMT
Overseas investors can now buy up to 74 per cent of Bharti Airtel's paid up capital, the Reserve Bank of India said. ‘The RBI has on Thursday advised that foreign institutional investors (FIIs)/registered foreign portfolios investors can now invest up to 74 per cent of the paid up capital of Bharti Airtel Ltd under the portfolio investment scheme,’ the central bank said in a release.
The RBI said Airtel's board of directors and shareholders have passed resolutions agreeing to increase the limit on the purchase of its equity shares and convertible debentures by FIIs. The purchases can be made through the primary market and through the stock exchanges.
The government last year allowed up to 100 per cent foreign shareholding in the telecom sector, increasing it from a cap of 74 per cent earlier.
FIIs held 16.39 per cent of Bharti Airtel's shares as of 31 March, according to data on the BSE website. FIIs, non-resident Indians and persons of Indian origin can invest in the primary and secondary capital markets in India through the portfolio investment scheme.
The RBI monitors ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
The RBI said Airtel's board of directors and shareholders have passed resolutions agreeing to increase the limit on the purchase of its equity shares and convertible debentures by FIIs. The purchases can be made through the primary market and through the stock exchanges.
The government last year allowed up to 100 per cent foreign shareholding in the telecom sector, increasing it from a cap of 74 per cent earlier.
FIIs held 16.39 per cent of Bharti Airtel's shares as of 31 March, according to data on the BSE website. FIIs, non-resident Indians and persons of Indian origin can invest in the primary and secondary capital markets in India through the portfolio investment scheme.
The RBI monitors ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
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