Foreign portfolio investors get to invest up to 49 per cent in Kaveri Seeds

MUMBAI: The Reserve Bank of India ( RBI) has allowed foreign portfolio investors (FPIs) to invest up to 49 per cent of Kaveri Seeds' equity base.

The shareholding of foreign institutional investors (FIIs) or registered FPIs (RFPIs) in Kaveri Seeds has dropped below the revised threshold limit.

Hence, the restrictions on the purchase of shares of the company are withdrawn with immediate effect, RBI said.

"The FIIs/RFPIs can now invest up to 49 per cent of the paid-up capital of Kaveri Seeds under the Portfolio Investment Scheme (PIS)," the central bank said in a notification.

BSE data showed FIIs held 22.26 per cent in Kaveri Seeds as of the quarter ended March 2015.

The proposal has been cleared both by the Board and the shareholders, both agreeing to raise the limit.

The purchases could be made through the primary market and stock exchanges.

FIIs, NRIs and PIOs (Persons of Indian Origin) can invest in primary and secondary capital markets in India through PIS.

RBI monitors ceilings on FII/NRI/PIO investment in Indian companies on a daily basis and has fixed the cut-off at two percentage points lower than the actual level.

Kaveri Seeds is a producer of genetically-enhanced premium quality seeds of maize, cotton, sun flower, bajra, sorghum, rice and several vegetable crops.

The stock closed at Rs 783.05 on BSE on Friday, down 2.81 per cent.