The Reserve Bank today allowed foreign institutional investors (FIIs) to buy up to 49 per cent stake in drug major Glenmark Pharmaceuticals.

FIIs “through primary market and stock exchanges, can now purchase up to 49 per cent of the paid up capital of Glenmark Pharmaceuticals Ltd under the Portfolio Investment Scheme (PIS),” the central bank said.

The Mumbai—based firm had passed a board resolution and a special resolution by the shareholders, agreeing for enhancing the limit from 40 per cent to 49 per cent for the purchase of its equity shares and convertible debentures by FIIs.

The purchases could be made through primary market and stock exchanges, RBI added.

Glenmark has a “significant presence” in branded generics markets across emerging economies including India, said the company’s website.

Glenmark’s share closed at Rs 899.35 on BSE, down 0.71 per cent over yesterday’s close.