FII holding in cos declines drastically

Surprisingly there are three companies that have already reached the newly enhanced 10 per cent investment limit for portfolio investments by NRIs, overseas corporate bodies OCB and persons of Indian origin PIO. The three companies are Garware Shipping Co. Ltd, Rajasthan Weaving and Spinning Mills Ltd and Baroda Rayon Corporation.

It was only in the June 1 union budget the government had announced thehike in the NRI/OCB portfolio investment limit from 2 per cent to 10 per cent of a company8217;s equity. In a further announcement on June 22, the government took the NRI/OCB investment limit out of the overall foreign portfolio investment limit of 24/30 per cent. There are also three companies where NRI/ OCB investment has reached the trigger point of 8 per cent. The companies are Bharati Telecom Ltd, Ion Exchange India and Madras Aluminium Co Ltd.

The RBI will follow the same pattern of monitoring the investment position of NRIs/OCBs as that adopted in the case of FII investment. quot;The RBI will now alert banks in respect of investment by NRIs/OCBs/PIOs under then portfolio investment scheme when the holding reaches 8 of the company8217;s paid up capital.