RBI allows up to 74% foreign investment in DEN Networks

The Reserve Bank of India has allowed foreign investors to raise their stake up to 74 per cent in DEN Networks.

“Foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest up to 74 per cent of the paid-up capital of DEN Networks Limited under the portfolio investment scheme (PIS),” the central bank said in a notification.

The central bank said the decision came after the company passed resolutions at its board of directors’ level and a special resolution by shareholders, agreeing to enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.

FIIs, non-resident Indians and persons of Indian origin can invest in primary and secondary capital markets in India through PIS.

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