The Reserve Bank of India has allowed Aditya Birla Group firm Grasim Industries to raise foreign shareholding to 49 per cent from the existing limit of 30 per cent.
The RBI has notified that foreign institutional investors/ foreign portfolio investors can now invest from 30 per cent to 49 per cent of the paid up capital of Grasim Industries Limited under the portfolio investment scheme (PIS), the company said in a BSE filing today.
Grasim Industries has passed necessary resolution at the board of directors' level and also a special resolution by its general body to increase FIIs/FPIs' investment limit to 49 per cent, it added.
FIIs, NRIs and PIOs (persons of Indian origin) can invest in primary and secondary capital markets in India through portfolio investment scheme (PIS).
The RBI monitors ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. It has fixed the cut-off points two percentage points lower than the actual ceiling.