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The Reserve Bank has allowed electrical goods maker Havells India to enhance the limit for purchase of its equity shares and convertible debentures by FIIs up to 40% of its paid up capital.
"...That Havells India has passed resolutions at the Board of directors' level and a special resolution by the shareholders, agreeing to enhance the limit for purchase of its equity shares and convertible debentures by Foreign Institutional Investors (FIIs), through primary market and stock exchanges, under the Portfolio Investment Scheme up to 40% of its paid up capital.
Under the Portfolio Investment Scheme (PIS),the ceiling for overall investment for FIIs is 24% of the paid up capital of the Indian company.
The ceiling of 24% for FII investment can be raised up to sectoral cap/statutory ceiling, subject to the approval of the board and the general body of the company passing a special resolution to that effect.
