RBI allows foreign investors to increase stake up to 49% in Tejas Networks
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Mumbai: The Reserve Bank of India (RBI) has allowed foreign investors to increase their stake to 49% from earlier 24% in telecom infrastructure firm Tejas Networks.
Foreign Institutional Investors (FIIs)/Foreign Portfolios Investors (FPIs) can now invest up to 49% from earlier default limit of 24% and Non-resident Indians (NRIs) can invest up to 24% from earlier default limit of 10% of the paid up capital of Tejas Networks, the RBI said in a notification.
The investment allowance comes under Portfolio Investment Scheme (PIS). Before this, Tejas Networks passed resolution at its board of directors’ level and a special resolution by the shareholders, agreeing for enhancing investment limit for FIIs/FPIs and NRIs.
FIIs, NRIs and PIOs (Persons of Indian Origins) 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.