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Journalism of Courage
MUMBAI, June 24: The Reserve Bank of India, on Tuesday, approved Mastek Ltd’s proposal to raise the foreign portfolio investment limit in its shares to 30 per cent from the current 24 per cent. Earlier the board of directors of the company and the general body of the shareholders had given its approval.
This is the second company after Infosys Technologies, that RBI has given permission for the increased foreign holding. Foreign Institutional Investors (FIIs) holding had already touched the 24 per cent limit in these two scrips. Following the central bank permission, the FIIs can now renew buying in the scrip till their combined holding reach 30 per cent.
The alert limit for the extended FII holding is kept at 26 per cent, after which every purchase in the market by FIIs will have to be carried out with the prior approval of RBI. RBI monitors the foreign investments in companies on a daily basis. For effective monitoring of the foreign investment ceiling limits in Indian companies, the central bank alerts all the designated bank branches after the foreign holding has reached the cut-off limit.
