INDIA: Change to investment threshold in Ms Hindustan Petroleum Corporation Ltd

Monday August 8 2016

On 5th August 2016, the Reserve Bank of India (RBI) announced that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 40% of the paid up capital of M/s Hindustan Petroleum Corporation Ltd. (HPCL) under the Portfolio Investment Scheme (PIS). This is a substantial increase from the 24% threshold that was previously in place.

The Reserve Bank has stated that the company passed a resolution at its Board of Directors’ level and a special resolution by the shareholders, agreeing to enhance the limit for the purchase of its equity shares by FIIs/RFPIs. Purchases can be made through both the primary market and stock exchanges.

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