The Reserve Bank has allowed Credit Analysis & Research to increase FII shareholding limit up to 74 per cent of the paid up capital of the company.
"... Foreign Institutional Investors (FIIs), through primary market and stock exchanges, can now purchase up to 74 per cent of the paid up capital of Credit Analysis & Research Limited under the Portfolio Investment Scheme (PIS)," RBI said in a release.
The company has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing to enhance the limit for the purchase of its equity shares and convertible debentures by Foreign Institutional Investors (FIIs), the release said.
FII shareholding in the company was 15.66 per cent as of March 31, 2014, according to the BSE data.
In a separate note, RBI said that it has removed City Union Bank from its ban list allowing it to raise the FII limit up to 35 per cent of its paid up capital as the foreign shareholding limit had gone below threshold level.
"It is also advised that for FII or Registered Foreign Portfolio Investor (RFPI) or Qualified Foreign Investors (QFI) and NRI under PIS, individual ceiling shall be 5 per cent respectively and aggregate limit for all RFPI/FII/QFI shall be 35 per cent.
"... City Union Bank will have to monitor individual limits of FII/FPI/QFI & NRI and also ensure that at no time its total foreign investment (direct as well as indirect) exceeds 49 per cent, beyond which, it should seek prior FIPB approval," RBI added.
