Grasim Industries to raise foreign investment limit to 30%
The Dollar Business Bureau Grasim Industries Ltd, an arm of Aditya-Birla group, has decided to increase the foreign investment limit from the currently approved 24 percent to 30 percent, according to a statement issued by the company. The decision, taken by the shareholders, will put into effect an stated increase in the investment limit for Registered Foreign Portfolio Investors (RFPIs)/Foreign Institutional Investors (FIIs) of the company’s equity share capital. The rise will come into effect after due approval from the Reserve Bank of India (RBI). The change has been brought about to further aid investments by the RFPIs/FIIs into the company’s equity shares. This headroom for increase will be augmented following the merger of Aditya Birla Nuvo Ltd (ABNL) with Grasim Industries, considering the level of ...
Spotting FDI-trade synergy can make a difference
However, traders should look at the changes closely to spot opportunities in future. Dr. K.S. Rao , General Manager (Strategic Planning), Bank of Baroda, Mumbai, India Among other measures to attract foreign funds, the government’s decision to increase the FDI cap from 26% to 49% in defence and insurance sectors is a far-reaching positive step. It can have a multiplier impact on boosting India’s economy. Moreover, the move to treat income from Foreign Investment Portfolio (FPI) as ‘capital gain’ instead of ‘business income’ provides clarification on treatment of its income that can put tax litigations to rest. Going forward, it is proposed to merge limits for foreign direct, portfolio investment, investment by NRIs and venture capital investors in most sectors into ...
