Reserve Bank has allowed foreign investors to hike their stake in Motherson Sumi Systems to up to 30 per cent from 24 per cent earlier.
Foreign institutional investors/registered foreign portfolio investors can, under the Portfolio Investment Scheme (PIS), now invest up to 30 per cent of the paid up capital of Motherson Sumi Systems Limited, RBI said in a notification.
The company's Board of Directors had passed a resolution and its shareholders passed a special resolution agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs.
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FIIs, NRIs and PIOs (Persons of Indian Origin) can invest in primary and secondary capital markets in India through PIS.
The 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.
Motherson Sumi shares closed 0.57 per cent down at Rs 313.90 on the BSE.
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