The Hindu Business Line : Balrampur Chini approves hike in FII investment limit

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Balrampur Chini approves hike in FII investment limit

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AGM to decide on increasing borrowing limit

Kolkata , Jan. 8

In a bid to facilitate higher investments by FIIs, the board of directors of Balrampur Chini Mills Ltd has approved enhancement in investment limit by FIIs in the company's equity share capital from 40 per cent to 60 per cent. A special resolution in this regard will be placed at the forthcoming annual general meeting for shareholders' approval.

As per rules currently applicable, the total holding of all FIIs including sub-accounts of an FII, in a company, shall not exceed 24 per cent of its paid up capital which can be increased up to the relevant sectoral cap in respect of the said company by passing a resolution by its board followed by passing a special resolution in the AGM to that effect. Hence the special resolution on the subject at the company's next AGM.

The resolution clarifies that under the era of the liberalised policy of the Union Government in respect of foreign investment in India, the foreign institutional investors (FIIs) have assumed a crucial role in the Indian capital market. According to a company source, the management will place another resolution at the AGM for shareholders' approval in regard to empowering the board to increase its borrowing limit from Rs 1,000 crore to Rs 2,000 crore keeping in mind the expansion and diversification plans of the company.

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