RBI Ups Edelweiss FIIs Investment Limit To 28%

Edelweiss Financial Services provides various services like investment banking, institutional equities, private client broking, asset management, wealth management, insurance broking and wholesale financing services to corporate, institutional and high net worth individual clients in India. The company had total FIIs investment of 22.63% of the total paid up capital till December 31, 2013. The Reserve Bank of India has increased the FII limit to 28% in this company. 

RBI monitors the ceilings on investments by FIIs, Non-Resident Indians (NRIs), and Person of Indian Origin (PIOs) in India. The central bank has set a cut off level to 22%, which was 2% lower than the actual ceiling of 24%. As the company reached its cut-off level they passed resolutions at the Board of Directors' level and a special resolution by the shareholders. The resolution was an agreement for enhancing the limit for the purchase of its equity shares and convertible debentures by Foreign Institutional Investor (FIIs), through primary market and stock exchanges up to 28% of the paid-up capital as per the press release of RBI.

As the restriction of FII limit has been increased by the RBI this is going to increase the foreign investments in the company. Following to this news the share of the company was trading up by 4.8% (9:26 AM) on BSE at Rs 31.60.