RBI modifies FII limit to 34% under Multi Commodity Exchange of India
The Reserve Bank of India on Friday, announced that Foreign Institutional Investors (FIIs) can now invest up to 34% under the Multi Commodity Exchange of India.
It said in a statement,"RBI notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can under the Portfolio Investment Scheme (PIS) now invest upto 34% of the paid up capital of Multi Commodity Exchange of India Limited."
Earlier, the ceiling for overall investment for FIIs was 24% of the paid up capital of the Indian company and 10% for NRIs/PIOs.
The purchases could be made through primary market and stock exchanges.
Foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS). Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.
RBI said,"The company's board of directors has passed a resolution and its shareholders have passed a special resolution, agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs.