INDIA: India Foreign Investment by FIIs under PIS: Mahindra and Mahindra Financial Services Ltd, Maruti Suzuki India Ltd

Tuesday October 4 2011

The Reserve Bank of India have announced that Foreign Institutional Investors can now purchase equity shares and convertible debentures of M/s Mahindra & Mahindra Financial Services Limited through primary market and stock exchanges under the Portfolio Investment Scheme, provided:FIIs through primary market and stock exchanges up to 49 per cent of the paid up capital of the company under Portfolio Investment Scheme in relation to India foreign investment.The Reserve Bank of India has also announced that the aggregate share holdings in Maruti Suzuki India Ltd by Foreign Institutional Investors under the Portfolio Investment Scheme have gone below the prescribed trigger limit. Hence, this company has been removed from the caution list for FII investment and the restrictions placed on the purchase of shares of this company are withdrawn with immediate effect.Therefore, it will be in order to purchase the shares of the above company in the secondary market on behalf of FIIs who have obtained permission to invest under the Portfolio Investment Scheme subject to the existing ceilings and guidelines in this regard.

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