MUMBAI, Oct 19: Housing finance company, Repco Home Finance has been allowed to raise its foreign shareholding to 49 per cent, after getting approval from the Reserve Bank.
The foreign shareholding limit by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) had gone below the threshold limit in the company.
Since the threshold limit fell, the RBI removed the restrictions placed on the company on the purchase of shares by foreign investors.
“FIIs/RFPIs can now invest upto 49 per cent of the paid up capital of Repco Home Finance Limited under the Portfolio Investment Scheme,” RBI said in a notification.
Repco had passed resolutions at its Board of Directors’ level as well as a special resolution by shareholders, agreeing to enhance the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.
FIIs held 40.45 per cent shares in the bank as of June 30, 2014, according to data on BSE.
Shares of the company had closed 4.23 per cent higher at Rs 469.75 apiece on the exchange.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).
The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
To effectively monitor the limit, RBI has fixed cut-off points two percentage points lower than the actual ceiling. (PTI)
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