RBI allows up to 100% FII investment in Crompton Greaves

MUMBAI: Foreign institutional investors are now allowed to invest up to 100 per cent of the paid up capital in CromptonGreaves, the RBI said in a notification.

"Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 100 per cent of the paid up capital of Crompton Greaves Limited under the Portfolio Investment Scheme (PIS)," RBI said in a release.

The decision follows passage of resolutions at company's 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 held 15.93 per cent shares in the company as of quarter ended September 30, 2014.

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.

Crompton Greaves shares closed at Rs 178.55 a piece on the BSE today, up 4.6 per cent from the previous close.