RBI revises ceiling for companies investing abroad

Mumbai, June 14 (UNI) In a bid to provide greater flexibility to Indian companies investing abroad, the Reserve Bank today enhanced the investment limit to 300 per cent of their net worth from the existing 200 per cent.

The guideline is in tune with the central bank directives announced in the annual monitory policy. However, limit applicable to registered partnership firms for overseas investment has been kept unchanged at 200 per cent, said RBI.

As per the revised guidelines, listed Indian companies are permitted to invest up to 35 per cent of their net worth in the equity of listed foreign companies, which are listed on a recognised stock exchange and having shareholding of at least 10 per cent in Indian companies. The limit was earlier 25 per cent.

UNI