The Reserve Bank today allowed foreign investors to hold up to 74 per cent paid up capital in UPL Ltd under Portfolio Investment Scheme (PIS) as the prescribed limit has gone below threshold.
"...Advised that FIIs/RFPIs can now invest up to 74 per cent of the paid up capital of UPL Limited under the Portfolio Investment Scheme," RBI said in a notification.
The foreign shareholding by Foreign Institutional Investors (FIIs) or Registered Foreign Portfolios Investors (RFPIs) in the company had gone below the revised threshold limit.
The decision to enhance the limit for foreign investment came after the board of the company passed special resolution, agreeing to raise the limit for purchase of its equity shares and convertible debentures by FIIs/RFPIs.
"Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," RBI said.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).
The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
UPL Ltd share traded 1.15 per cent higher at Rs 335 at the close of business of BSE today.
