49% Fii Stake Okayed In Rpl, Ril, Crisil, Global Tele

The Reserve Bank of India (RBI) has allowed foreign institutional investors (FIIs) to purchase equity shares and convertible debentures up to 49 per cent in the case of Crisil, Global Tele-Systems Ltd, Reliance Industries Ltd and Reliance Petroleum Ltd. It has allowed these entities to purchase up to 40 per cent in the case of SSI Ltd.

Earlier, the central bank allowed FIIs to purchase up to 49 per cent equity shares of ICICI Bank, HDFC and Infosys Technologies and 40 per cent in Maars Software International.

This decision of the RBI comes in the wake of the respective companies board of directors and general body meetings passing special resolutions to this effect.

The banking regulator has been allowing the FIIs to invest up to 49 per cent (revised up from 40 per cent) of the paid-up capital of Indian companies with the approval of the general body of the share holders by a special resolution. Post-1992, the participation of FIIs and mutual funds in the stock markets has infused competition in the market.

The Reserve Bank of India had notified on August 29, 2001 that FIIs, non-resident Indians (NRIs) and overseas corporate bodies (OCBs) can now purchase equity shares and convertible debentures of ICICI Bank Ltd, up to 49 per cent of its paid up capital through primary and secondary markets in India, as it (the Bank) has passed resolutions at its board of directors' and general body meetings to this effect.

Earlier, it had advised that FIIs could purchase equity shares and convertible debentures of Maars Software International Ltd. and Infosys Technologies Ltd up to 40 and 49 per cent, respectively. Both companies have passed resolutions at their board of directors' meetings and special resolutions in their general body meetings agreeing for the purchase of their equity shares and convertible debentures by FIIs up to 40 and 49 per cent respectively of their paid-up capital through primary/secondary markets in India under the portfolio investment scheme.