The Reserve Bank has allowed foreign investors to invest up to 34 per cent of the paid-up capital in Container Corporation of India.
"Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 34 per cent of the paid up capital of Container Corporation of India Ltd under the Portfolio Investment Scheme (PIS)," RBI said in a notification today.
The decision follows passage of resolutions at its Board of Directors' level and a special resolution by company's shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs, RBI said.
The purchases could be made through primary market and stock exchanges.
The RBI said that the foreign shareholding by FIIs/RFPIs in Container Corporation of India Ltd has gone below the revised threshold limit.
"Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," it said.
As per data available on BSE, FIIs held 25.03 per cent shares on the company as of quarter ended December 2014.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.
The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
To effectively monitor the limit, RBI has fixed cut-off points two percentage points lower than the actual ceiling.
Scrip of the company closed 0.17 per cent lower at Rs 1,488.25 per share on BSE.
