RBI allows foreign investors to hike stake in HPCL

MUMBAI: Reserve Bank has allowed foreign investors to hike their stake in Hindustan Petroleum Corp to up to 40 per cent under portfolio investment scheme (PIS).

" Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) from default can now invest from existing 24 per cent up to 40 per cent of the paid up capital of Hindustan Petroleum Corporation Ltd (HPCL) under PIS," an RBI notification said today.

A special resolution was passed by company shareholders to enhance the limit for purchase of equity shares by FIIs/RFPIs, RBI said.

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.

HPCL share closed 4.27 per cent higher at Rs 1,257.05 on BSE.