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RBI allows foreign investors buy up to 74% stake in Fortis Healthcare

RBI had put Fortis Healthcare under the ban list last month with respect to foreign investment

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Press Trust of India Mumbai
Last Updated : Jul 07 2017 | 9:42 PM IST
Reserve Bank has allowed foreign investors to buy more shares in Fortis Healthcare Ltd as the company's board has hiked their investment limit to 74 per cent.

Foreign Institutional Investors (FIIs)/ Foreign Portfolio Investors (FPIs) investment limit under Portfolio Investment Scheme (PIS) in Fortis Healthcare has increased from 24 per cent to 74 per cent of its paid up capital, RBI said in a notification.

Fortis Healthcare has passed resolutions at its board of directors level and general body as required under FEMA 1999 and foreign investment under PIS in Indian companies.

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"Owing to the increase in FIIs/FPIs investment limit, it is notified that the aggregate shareholding by FIIs/FPIs in Fortis Healthcare has gone below the prescribed FIIs/FPIs investment limit for the company.

"Hence, the restrictions placed on the purchase of shares by FIIs/FPIs of the above company are withdrawn with immediate effect," it said.

RBI had put Fortis Healthcare under the ban list last month with respect to foreign investment under PIS as the said limit was 24 per cent at that time.

FIIs, NRIs and PIOs (Persons of Indian Origin) can invest in primary and secondary capital markets in India through PIS.

RBI monitors ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. It has fixed the cut-off points two percentage points lower than the actual ceiling.

Stock of Fortis Healthcare closed 2.25 per cent down at Rs 158.35 on BSE today.

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First Published: Jul 07 2017 | 9:41 PM IST

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