Mumbai: The Reserve Bank Wednesday said it has removed Hathway Cable & Datacom from its caution list and foreign investors can now buy more shares in the company.
"Foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now purchase shares of Hathway Cable & Datacom," RBI said in a release.
The investments can go up to 74 percent -- revised from the earlier limit of 49 percent under foreign direct investment policy -- of the company's paid-up capital through GDR/ADR/FDI under the Portfolio Investment Scheme (PIS) in primary market and stock exchanges, it added.
"The Reserve Bank has, with immediate effect, withdrawn the restrictions placed on the purchase of shares of Hathway Cable & Datacom stating that the company has passed necessary resolutions at the level of its board of directors and shareholders, agreeing to enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs," it said.
According to BSE data, FIIs held 14.54 percent in the company as of the quarter ended June 2015.
FIIs, NRIs and PIOs (persons of Indian origin) can invest in primary and secondary capital markets in India through PIS.
RBI monitors ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
To effectively monitor the limit, RBI has fixed a cut-off point two percentage points lower than the actual ceiling.
The stock closed at Rs 40.40 on BSE, up 1.64 percent.
