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April 2012

A.P. (DIR Series) Circular No. 94, dated 19-3- 2012 — Clarification — Prior intimation to the Reserve Bank of India for raising the aggregate Foreign Institutional Investors/Non- Resident Indian limits for investments under the Portfolio Investment Scheme.

By Gaurang Gandhi, Chartered Accountant
Reading Time 1 mins
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Presently, Foreign Institutional Investors (FII) and Non-Resident Indians (NRI) are allowed to purchase/ sell shares and convertible debentures of an Indian company (through registered brokers) on recognised stock exchanges in India within the aggregate investment limit of 24 and 10%, respectively, of the paid-up equity capital or value of each series of convertible debentures of the Indian company.

This Circular requires all Indian companies raising the aggregate FII & NRI investment limit to the sectoral cap/statutory limit, to immediately intimate the said increase in limits to RBI along with a Certificate from the Company Secretary stating that all the relevant provisions of FEMA and the Foreign Direct Investment Policy have been complied with.

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