BPCL allowed to raise foreign holding to up to 49%

The Reserve Bank has allowed foreign investors to raise their holdings in Bharat Petroleum Corporation Ltd to up to 49 per cent.
"Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49 per cent of the paid up capital of Bharat Petroleum Corporation Ltd. under the Portfolio Investment Scheme," RBI said in a release today.
RBI said the decision came after the company passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs.
The purchases could be made through primary market and stock exchanges, it added.

As of March 31, 2016 the promoter group held 54.93 per cent stake in BPCL, while the public holding stood at 45.07 per cent, according to data available on BSE.
The factors which were pushing the case for a rate cut

included inflation being under control at 3.3 per cent for December and under 4 per cent mark in January, pushing growth prospects after the demonetisation impact and also a commitment from the government to keep the fiscal deficit at 3.2 per cent for next fiscal.
However, core inflation staying put and not showing signs of decline, a possible increase in oil prices following decisions by the OPEC and further hardening of rates in the US were some of the factors that prevented RBI from lowering the lending rate.

The Reserve Bank is targeting to get headline inflation at 5 per cent by March 2017, but the targets after that were unclear. It is mandated to ensure the inflation comes under the 2-6 per cent band and is working towards achieving the median 4 per cent level.