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Foreign
Institutional Investors (FIIs), Non-Resident Indians (NRIs), and Persons of Indian
Origin (PIOs) are allowed to invest in the primary and secondary capital markets
in India through the portfolio investment scheme (PIS). Under this scheme, FIIs/NRIs
can acquire shares/debentures of Indian companies through the stock exchanges
in India.
The ceiling
for overall investment for FIIs is 24 per cent of the paid up capital of the Indian
company and 10 per centfor NRIs/PIOs. The limit is 20 per cent of the paid up
capital in the case of public sector banks, including the State Bank of India.
The
ceiling of 24 per cent for FII investment can be raised up to sectoral cap/statutory
ceiling, subject to the approval of the board and the general body of the company
passing a special resolution to that effect. And the ceiling of 10 per cent for
NRIs/PIOs can be raised to 24 per cent subject to the approval of the general
body of the company passing a resolution to that effect.
The
ceiling for FIIs is independent of the ceiling of 10/24 per cent for NRIs/PIOs.
The
equity shares and convertible debentures of the companies within the prescribed
ceilings are available for purchase under PIS subject to:
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the total purchase of all NRIs/PIOs both, on repatriation and non-repatriation
basis, being within an overall ceiling limit of (a) 24 per cent of the company's
total paid up equity capital and (b) 24 per cent of the total paid up value of
each series of convertible debenture; and
-
the investment made on repatriation basis by any single NRI/PIO in the equity
shares and convertible debentures not exceeding five per cent of the paid up equity
capital of the company or five per cent of the total paid up value of each series
of convertible debentures issued by the company.
Monitoring
Foreign Investments
The
Reserve Bank of India monitors the ceilings on FII/NRI/PIO investments in Indian
companies on a daily basis. For effective monitoring of foreign investment ceiling
limits, the Reserve Bank has fixed cut-off points that are two percentage points
lower than the actual ceilings. The cut-off point, for instance, is fixed at 8
per cent for companies in which NRIs/ PIOs can invest up to 10 per cent of the
company's paid up capital. The cut-off limit for companies with 24 per cent ceiling
is 22 per cent and for companies with 30 per cent ceiling, is 28 per cent and
so on. Similarly, the cut-off limit for public sector banks (including State Bank
of India) is 18 per cent.
Once
the aggregate net purchases of equity shares of the company by FIIs/NRIs/PIOs
reach the cut-off point, which is 2% below the overall limit, the Reserve Bank cautions all designated bank branches so as not to purchase any more equity
shares of the respective company on behalf of FIIs/NRIs/PIOs without prior approval
of the Reserve Bank. The link offices are then required to intimate the Reserve
Bank about the total number and value of equity shares/convertible debentures
of the company they propose to buy on behalf of FIIs/NRIs/PIOs. On receipt of
such proposals, the Reserve Bank gives clearances on a first-come-first served
basis till such investments in companies reach 10 / 24 / 30 / 40/ 49 per cent
limit or the sectoral caps/statutory ceilings as applicable. On reaching the aggregate
ceiling limit, the Reserve Bank advises all designated bank branches to stop
purchases on behalf of their FIIs/NRIs/PIOs clients. The Reserve Bank also
informs the general public about the `caution’ and the `stop purchase’ in these
companies through a press release.
The
current list of companies allowed to attract investments from FIIs/NRIs/PIOs with
their respective ceilings is:
List
of companies
List of companies
which have raised the ceiling from 10% in respect of NRIs investments under PIS
(w.e.f As on August 7 , 2008)
Upto
24%
1 |
Alembic
Chemical Works Co. Ltd. |
2 |
Amar
Investments Ltd., Calcutta. |
3 |
Anglo-
India Jute Mills Co. Ltd. |
4 |
Arvind
Mills, Ahmedabad. |
5 |
Ashima
Syntex Ltd, Ahmedabad. |
6 |
Ashoka
Viniyoga Ltd. |
7 |
Bharat
Nidhi Ltd. |
8 |
BLB
Shares & Financial Services Ltd |
9 |
BPL
Ltd. |
10 |
Burr
Brown (India) Ltd |
11 |
Camac
Commercial Company Ltd. |
12 |
Ceenik
Exports (India) Ltd. |
13 |
Cifco
Finance Ltd., Mumbai. |
14 |
Classic
Financial Services & Enterprises Ltd, Calcutta. |
15 |
CPPL
Ltd, (Reliance Ind. Infrastructure Ltd) Mumbai. |
16 |
Crest
Communication Ltd. |
17 |
CRISIL |
18 |
DCM
Ltd. |
19 |
DCM
Shriram Consolidated Ltd. |
20 |
Dharani
Sugars & Chemicals Ltd |
21 |
Dolphin
Offshore Enterprises ( I ) Ltd. |
22 |
Emco
Ltd. |
23 |
Essar
Oil Ltd. |
24 |
Essar
Shipping Ltd., B’lore |
25 |
Essar
Steel Ltd. |
26 |
Eveready
Industries India Ltd. |
27 |
Fabworth
(I) Ltd. |
28 |
Federal
Bank Ltd. |
29 |
Ferro
Alloys Corporation Ltd., Tumsar. |
30 |
Gammon
India Ltd |
31 |
Grasim
Industries Ltd. |
32 |
GTL
Ltd.(formerly Global Tele-Systems Ltd.) |
33 |
GTL
Infrastructure Ltd |
34 |
Hamco
Mining & Smelting Ltd. |
35 |
HCL
Infosystems Ltd. |
36 |
HEG
Ltd |
37 |
Hindustan
Development Corp. Ltd, Calcutta. |
38 |
Hindustan
Nitroproducts (Gujarat) Ltd. |
39 |
Hindustan
Transmission Products Ltd., Mumbai |
40 |
HMG
Industries Ltd., Mumbai. |
41 |
Housing Development and Infrastructure Limited |
42 |
Indiabulls
Real Estate Ltd. |
43 |
India
bulls Securities Ltd. |
44 |
Indiabulls
Financial Services Ltd |
45 |
Igarashi
Motors India Ltd |
46 |
IVP
Ltd |
47 |
Jagatjit
Industries Ltd, |
48 |
Jai
Parabolic Springs Ltd. |
49 |
Jaysynth
Dyechem Ltd. |
50 |
Jindal
Strips Ltd. |
51 |
Jindal
Iron & Steel Co. Ltd. |
52 |
JJ
Spectrum Silk Ltd. |
53 |
Kartjikeya
Paper & Boards Ltd. |
54 |
K
Sera Sera Productions Ltd |
55 |
Lakhani
India Ltd. |
56 |
M.P.
Agro Fertilisers Ltd., Bhopal. |
57 |
Macleod
Russel (I) Ltd. |
58 |
Matsushita
Television and Audio India Ltd. |
59 |
Max
India Ltd |
60 |
Mazda
Enterprises Ltd., Mumbai. |
61 |
Media
Video Ltd. |
62 |
Monnet
Ispat & Energy Limited |
63 |
Multimetals
Ltd., Mumbai |
64 |
National
Steel Industries Ltd. |
65 |
Nicholas
Laboratories India Ltd., Mumbai. |
66 |
Networth Stock Broking Limited |
67 |
O.P.
Electronics Ltd., Mumbai. |
68 |
Oriental
Housing Development Finance Corp. Ltd. |
69 |
Pabacea
Biotec Ltd. |
70 |
Padmini
Technologies Ltd. |
71 |
Pearl
Polymers Ltd., New Delhi. |
72 |
Piramal
Healthcare Ltd. |
73 |
PNB
Finance & Industries Ltd |
74 |
Rajath
Leasing & Finance Ltd. |
75 |
Rajesh
Exports Limited |
76 |
Rama
Petrochemicals Ltd. |
77 |
Rama
Phosphates Ltd. |
78 |
Reliance
Industries Ltd., Mumbai. |
79 |
Rishra
Investment Ltd., Calcutta |
80 |
Rossell
Industries Ltd., Calcutta. |
81 |
Sahu
Properties Ltd |
82 |
Sanghvi
Movers Ltd |
83 |
Saurashtra
Paper & Board Mills Ltd. |
84 |
Saw
Pipes Ltd. |
85 |
Sayaji
Hotel Ltd. |
86 |
SB
& T International Ltd |
87 |
Sharyans
Resources Ltd. |
88 |
Shanti
Gears Ltd. |
89 |
Shibir
India Ltd., Calcutta |
90 |
Shrenuj
& Company Ltd. |
91 |
Shriram
Industries Enterprises Ltd., N. Delhi. |
92 |
Silverline
Industries Ltd. |
93 |
Sonata
Software Ltd. |
94 |
SRF
Ltd. |
95 |
Sterling
Lease Finance Ltd., Mumbai. |
96 |
Sujana
Metal Products Ltd |
97 |
Svam
Software Ltd. |
98 |
Synthetics
and Chemicals Ltd., Mumbai. |
99 |
Shrenuj & Company Limited |
100 |
The
Champdany Industries Ltd., Calcutta. |
101 |
The
Dharamsi Morarji Chemical Co. Ltd . |
102 |
The
Investment Trust of India Ltd. |
103 |
The
Morarjee Goculdas Spinning & Weaving Co Ltd, Mumbai. |
104 |
Tolani
Bulk Carrier Ltd. |
105 |
Unitech Limited. |
106 |
Uniworth
International Ltd. |
107 |
Vaibhav
Gems Ltd. |
108 |
Valecha
Engineering Ltd. |
109 |
VisualSoft
Technologies Ltd. |
110 |
Weltermann
International Ltd. |
111 |
Woolworth
(India) Ltd. |
112 |
Yes
Bank Ltd. |
113 |
Zora
Pharma Ltd. |
Upto 17%
1 |
Garware
Shipping Corporation Ltd. |
LIST
OF COMPANIES IN WHICH FII INVESTMENT IS ALLOWED UPTO 30% OF THEIR PAID UP CAPITAL
UNDER PIS
(w.e.f August 07, 2008)
1 |
Asian
Paints (India) Ltd |
2 |
Capital
Trust Ltd |
3 |
Container
Corporation of India |
4 |
Divi’s
Laboratories Ltd |
5 |
Ferro
Alloys Corporation Ltd |
6 |
Garware
Polyester Ltd |
7 |
GIVO
Ltd (formerly KB & T Ltd) |
8 |
Infotech
Enterprises Ltd |
9 |
Mahindra
Gesco Developers Ltd |
10 |
Orchid
Chemicals and Pharmaceuticals Ltd |
11 |
Penta
Soft Tec(Pentafour Communications Ltd) |
12 |
Polyplex
Corporation Ltd |
13 |
Ranbaxy
Laboratories Ltd |
14 |
Shasun
Chemicals Ltd |
15 |
Sonata
Software Ltd |
16 |
The
Paper Products Ltd |
17 |
Vikas
WSP Ltd |
LIST OF COMPANIES
IN WHICH FII INVESTMENT IS ALLOWED UPTO 40% OF THEIR Paid Up Capital
1 |
Adlabs
Films Ltd. |
2 |
Aftek
Infosys Ltd. |
3 |
Balaji
Telefilms Ltd. |
4 |
Bharat
Forge Ltd |
5 |
Burr
Brown (India )Ltd |
6 |
Cipla
Ltd. |
7 |
Elbee
Services Ltd |
8 |
Glenmark
Pharmaceuticals Ltd |
9 |
Gujarat
Ambuja Cements Ltd |
10 |
HEG
Ltd |
11 |
Hero
Honda Motors Ltd |
12 |
Jindal
Steel & Power Ltd |
13 |
Jyoti
Structures Ltd |
14 |
Maars
Software International Ltd |
15 |
Max
India Ltd |
16 |
Mount
Everest Mineral Water Ltd |
17 |
Padmini
Technologies Ltd. |
18 |
Rajasthan
Spinning & Weaving Mills Ltd |
19 |
Rico
Auto Industries Ltd. |
20 |
Shanti
Gears Ltd. |
21 |
Silverline
Technologies Ltd. |
22 |
Suven
Life Sciences Ltd. |
23 |
The
India Cements Ltd. |
24 |
The
Indian Hotels Company Ltd |
25 |
Thiru
Arooran Sugars Ltd. |
26 |
UTV
Software Communications Ltd |
27 |
Visual
Soft Technologies Ltd. |
28 |
Ways
India Ltd. |
29 |
Welspun
Gujarat Stahal Rohren Ltd |
30 |
Welspun
India Ltd |
31 |
Zicom
Electronic Security Systems Ltd |
LIST
OF COMPANIES IN WHICH FII INVESTMENT IS ALLOWED UPTO 49% OF THEIR Paid Up Capital
1 |
Alok
Industries |
2 |
Auribindo
Pharma Ltd. |
3 |
Arvind
Mills Ltd |
4 |
Bajaj
Hindustan Ltd |
5 |
Balakrishna
Industries Ltd |
6 |
Blue
Dart Express Ltd |
7 |
Core
Projects & Tech Ltd |
8 |
CRISIL |
9 |
Digital
GlobalSoft Ltd. |
10 |
Dr.
Reddy’s Laboratories Ltd. |
11 |
D.
S. Kulkarni Developers Ltd. |
12 |
Federal
Bank Ltd. |
13 |
Financial
Technologies (I) Ltd |
14 |
HDFC
Bank Ltd |
15 |
Himachal
Futuristic Communications Ltd. |
16 |
Hindustan
Lever Ltd. |
17 |
Hughes
Software Ltd. |
18 |
ICICI
Bank Ltd. |
19 |
Ind-Swift
Laboratories Ltd. |
20 |
Infrastructure
Development Finance Co Ltd |
21 |
Jain
Irrigation Systems Ltd. |
22 |
Karnataka
Bank Ltd. |
23 |
LIC
Housing Finance Ltd. |
24 |
Marksans
Pharma Ltd. |
25 |
Mahindra
& Mahindra Ltd. |
26 |
Mastek
Ltd |
27 |
Max India Ltd |
28 |
McDowell
& Co Ltd |
29 |
NIIT
Ltd. |
30 |
NIIT
Technologies Ltd. |
31 |
Panacea
Biotec Ltd. |
32 |
Reliance
Capital Ltd. |
33 |
Reliance
Energy Ltd. |
34 |
Reliance
Industries Ltd. |
35 |
Reliance
Petroleum Ltd. |
36 |
SB
& T International Ltd. |
37 |
Sadbhav Engineering Limited |
38 |
Sintex
Industries Ltd. |
39 |
S.
Kumars Nationwide Ltd |
40 |
Soffia
Software Ltd |
41 |
Strides
Arcolabs Ltd |
42 |
Sun
Pharmaceutical Industries Ltd. |
43 |
Swaraj
Mazda Ltd |
44 |
The
South Indian Bank Ltd |
45 |
United
Breweries (Holdings) Ltd |
46 |
United
Breweries Ltd |
47 |
United
Phosphorus Ltd |
48 |
UTI
Bank Ltd. |
49 |
Vimta
Labs Ltd. |
50 |
Wockhardt
Ltd. |
51 |
Yes
Bank Ltd. |
52 |
Zeefilms
Ltd. |
LIST OF COMPANIES
IN WHICH FII INVESTMENT IS ALLOWED UPTO LIMITS FIXED BY COMPANIES AS INDICATED
AGAINST THEIR NAMES
LIST
OF COMPANIES IN WHICH FII INVESTMENT IS ALLOWED UPTO SECTORAL CAP/STATUTORY CEILING
OF THEIR PAID UP CAPITAL
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