The Reserve Bank of India (RBI) on 26 October 2015 notified that the Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 74 percent of the paid up capital of DEN Networks Limited under the Portfolio Investment Scheme (PIS).
DEN Networks Limited has passed resolutions at its Board of Directors’ level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.
The purchases could be made through primary market and stock exchanges. The purchases would be subject to Regulation 5(2) of FEMA Notification and other terms and conditions stipulated by the Reserve Bank.
The Reserve Bank notified this under Foreign Exchange Management Act (FEMA), 1999.
Regulation 5(2) of FEMA Notification
As per Regulation 5(2) of FEMA Notification, a registered Foreign Institutional Investor (FII) may purchase shares or convertible debentures of an Indian company under the Portfolio Investment Scheme, subject to the terms and conditions specified in Schedule 2 of FEMA 1999.
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What: Notified by RBI
When: 26 October 2015