RBI allows CMC to increase FII limit up to 35%

Reserve Bank of India (RBI) has allowed CMC to raise its foreign investment limit up to 35% of paid-up capital.  The company has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs. RBI has notified that Foreign Institutional Investors (FIIs), through primary market and stock exchanges, can now purchase up to 35% (revised from earlier 24%) of the paid up capital of CMC under the Portfolio Investment Scheme (PIS). RBI further notified that the foreign share holding by FIIs in CMC have gone below the revised threshold limit stipulated under the extant FDI policy. Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect. CMC is leading system engineering and Integration Company in India and is a subsidiary of Tata Consultancy Services, Asia’s largest software company. Operating out of 18 offices and 180 services locations in the country, CMC employs over 10,000 people and has a wholly owned subsidiary in USA called CMC Americas, Inc.