RBI allows foreign investors to up stake in Tejas Networks

TIL Desk/Business/Mumbai/ The Reserve Bank has allowed foreign investors to up their stake to 49 per cent from earlier 24 per cent in telecom infrastructure firm Tejas Networks.

Foreign Institutional Investors (FIIs)/Foreign Portfolios Investors (FPIs) can now invest up to 49 per cent from earlier default limit of 24 per cent and NRIs can invest up to 24 per cent from earlier default limit of 10 per cent of the paid up capital of Tejas Networks, the RBI said in a notification.

The investment allowance comes under Portfolio Investment Scheme (PIS). Before this, Tejas Networks passed resolution at its board of directors’ level and a special resolution by the shareholders, agreeing for enhancing investment limit for FIIs/FPIs and NRIs.

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.