The earlier FDI limit was 49 per cent. The Foreign Investment Promotion Board has already given permission to Hathway to increase its FDI limit
BestMediaInfo Bureau | Mumbai | August 28, 2015
The Reserve Bank of India has issued a notice permitting Multi System Operator Hathway Cable & Datacom to increase its foreign direct investment (FDI) limit from 49 per cent to 74 per cent. Earlier, Hathway had got the nod for the same from the Foreign Investment Promotion Board (FIPB).
The RBI has granted its approval to Hathway for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs through primary market and stock exchanges up to 74 per cent of the paid up capital of the company under Portfolio Investment Scheme post approval of the same by the FIPB.
This would be subject to the Regulation 5(2) of FEMA Notification No.20/2000 RB dated May 3, 2000 (as amended from time to time) issued under FEMA, 1999.
The RBI has also advised all custodian banks that since the foreign share holding by FIIs/RFPIs in Hathway have gone below the revised threshold limit stipulated under the extant FDI Policy, hence the restrictions placed on the purchase of shares of the company vide its letter dated February 20, 2015 are withdrawn with immediate effect and equity shares of Hathway can now be purchased through primary market and stock exchanges.
This approval is given subject to the condition that the onus of compliance with the FDI policy and FEMA regulations, including downstream investment, would continue to remain with Hathway.