RBI permits hike in FII limit in Tata Motors, HCL Tech

The Reserve Bank today allowed a hike in FII investment limit in Tata Motors Ltd and HCL Technologies.

 

In case of Tata Motors, RBI permitted increase in FII investment limit through differential voting right shares up to 75%.

 

"FIIs may now purchase up to 75% of the company's equity shares with Differential Voting Rights or 'A' Type ordinary shares paid up capital through the primary market and stock exchanges under the portfolio investment scheme," RBI said in a statement.

 

However, the Foreign Institutional Investor limit for ordinary shares of the company will remain unchanged at 35%.

 

In a separate statement, RBI also allowed enhancing the limit for purchase of HCL Technologies equity shares and convertible debentures by FIIs under the Portfolio Investment Scheme, up to 49%.

 

Earlier the limit was 30% of the paid up capital of HCL Technologies.

 

Under the scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.

 

The RBI permission comes after the boards of companies approve hiking FII investment limit.

 

In a BSE filing, HCL Technologies said: "The limit for purchase of the equity shares of HCL Technologies (company) under the Portfolio Investment Scheme (PIS), under Foreign Exchange Management Act, 1999 by Foreign Institutional Investors (Fll's) through primary market and stock exchanges is increased from 30% to 49% of the paid up equity share capital of the company."

 

The said limit is increased with effect from October 31, 2013, as notified by the RBI, the filing added.