Mumbai: The Reserve Bank of India (RBI) has allowed foreign investors to buy up to 100 per cent of the paid-up capital of Transwarranty Finance Ltd.For latest news on Business, like us on Facebook and follow us on Twitter.
It has also allowed NRIs to invest up to 24 per cent in the company.
"Foreign Institutional Investors/Registered Foreign Portfolios Investors and Non Resident Indians (NRIs) can now invest up to 100 per cent and 24 per cent respectively of the paid up capital of Transwarranty Finance Limited under the Portfolio Investment Scheme (PIS)," the RBI said in a notification.
The RBI said foreign shareholding by NRIs in Transwarranty Finance has gone below the revised threshold limit. "Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect."
The promoter held 53.61 per cent in the company as of September 30, 2015, while the rest of 46.39 per cent was held by others, data available on the BSE showed.
The company 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 and NRIs, the RBI said.
The company, headquartered in Mumbai, gives investment banking service to corporate and retail clients.
Shares in Transwarranty Finance, on Wednesday, ended 2.82 per cent higher at Rs 6.20 apiece on the BSE, whose benchmark Sensex finished down 0.68 per cent.