Aditya Birla Group firm, Grasim Industries, has received permission from the Reserve Bank of India to raise foreign shareholding from the existing limit of 30% to 49%.
According to a filing done by the company to the Exchanges, Foreign portfolio investors can now invest 49% of the paid up capital of Grasim Industries Limited, after the RBI notification under the portfolio investment scheme (PIS).
At the board of directors' level and also via a special resolution by its general body, necessary resolutions have been passed by Grasim Industries to increase FIIs/FPIs' investment limit to 49%.
Investments in secondary and primary capital markets in India through portfolio investment scheme (PIS), can be done by FIIs, NRIs and PIOs (persons of Indian origin).
The RBI on a daily basis monitors the cap on FII/NRI/PIO investments in Indian companies. It has fixed the cut-off points at two percentage points lower than the actual ceiling.