Mumbai, June 10 (IANS) Reserve Bank of India (RBI) on Friday increased private sector Yes Bank’s foreign holding limit to 74 per cent of the paid-up capital, under the portfolio investment scheme.
RBI, in a release here said foreign institutional investors (FIIs) and registered foreign portfolios investors (RFPIs) can now invest up to 74 per cent, from the existing 60 per cent, of the paid-up capital of Yes Bank under the Portfolio Investment Scheme (PIS).
“Yes Bank has passed resolutions at its Board of Directors’ level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs,” the release said.
Investors can make the purchases through the primary market and stock exchanges, it added.
A union cabinet panel had last month approved Yes Bank’s proposal to increase foreign investment limit in the bank to 74 per cent, entailing FDI inflows of up to $1 billion.
It got the approval to raise the limit without any sub- limits for investment by way of issue of non-equity shares and/or other permissible instruments to eligible non-resident investors.
Yes Bank already has an enabling approval from its board to raise an additional $1 billion of equity capital.