Mumbai, 2 June-2014, PTI: Foreign institutional investors can now invest up to 100 per cent of the paid up capital in Zee Entertainment Enterprises Ltd, an RBI notification said.
RBI allows up to 100 % FII investment in Zee Entertainment
Earlier investment limit for FIIs in the company was 49 per cent.
“Foreign institutional investors (FIIs) can now invest up to 100 per cent (revised from earlier limit 49 per cent) of the paid up capital of Zee Entertainment Enterprises Limited under the portfolio investment scheme,” the notification said.
As on March 2014, promoter shareholding in the company was 43.07 per cent while FIIs held 47.94 per cent shares, as per BSE data.
RBI said that decision came after the company passed resolutions at its Board of Directors’ level and shareholders agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs.
“The purchases could be made through primary market and through stock exchanges,” it added.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).
The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
To effectively monitor the limit, RBI has fixed cut-off points two percentage points lower than the actual ceiling.
Zee Entertainment is India’s largest vertically integrated media and entertainment company. Its portfolio consists of brands like Zee TV, Zee Cinema, Zee Music, Zee Premiere, ETC, ETC Punjabi, TEN Sports, Zee Studio, Zee Classic and Zee Sports.
Shares of the firm today closed at Rs 265.40 apiece on BSE, down 0.45 per cent from the previous close.