October 27, 2015

RBI Allows up to 74% Foreign Investment in DEN Networks

Mumbai: The Reserve Bank of India has allowed foreign investors to raise their stake up to 74 per cent in DEN Networks.

"Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 74 per cent of the paid up capital of DEN Networks Limited under the Portfolio Investment Scheme (PIS)," the RBI said in a notification.

The central bank said the decision came after the company passed resolutions at its board of directors level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.

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.

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