RBI allows FIIs to purchase 30% shares in Dabur

FIIs have been allowed to buy more shares in Dabur India as the company has passed a special resolution. File photo: V. Sudershan

The Reserve Bank on Monday allowed Foreign Institutional Investors (FIIs) to purchase shares in Dabur India up to 30 per cent of the firm’s paid up capital.

FIIs have been allowed to buy more shares in Dabur India as the company has passed a special resolution to enhance the limit for purchase of its equity shares and convertible debentures by FIIs.

“FIIs, through primary market and stock exchanges, can now purchase up to 30 per cent of the paid up capital of Dabur India Limited under the Portfolio Investment Scheme (PIS),” RBI said in a release.

As per data available on the BSE, FIIs held 19.94 per cent shares in Dabur India as of quarter ended December 2013.

FIIs, NRIs and PIOs are allowed to invest in the primary and secondary capital markets in India through PIS.

RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.

For effective monitoring of foreign investment ceiling limits, the Reserve Bank has fixed cut-off points that are two percentage points lower than the actual ceilings.

Dabur India shares closed at Rs. 174.50 apiece on the BSE, down 0.09 per cent from their previous close.