RBI allows foreign investors to invest up to 45% in Jubilant Life

The Reserve Bank has allowed foreign investors to invest up to 45% in Jubilant Life Sciences under Portfolio Investment Scheme (PIS).

"Foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest up to 45% of the paid-up capital of Jubilant Life Sciences Limited under PIS," RBI said in a notification.

RBI said the company passed a resolution at the level of its Board of Directors and a special resolution by shareholders, agreeing to enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.

As of quarter ended September 2015, FIIs held 17.56% in the company, as per data on BSE. FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.

RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis and has fixed the cut-off points two percentage points lower than the actual ceiling.

The stock closed at Rs 419.20 on BSE on Friday, down 1.11%.