The Reserve Bank of India (RBI) had allowed non-resident Indians (NRI) to acquire shares in Tai Industries. NRIs were also allowed to purchase shares in Madras Aluminum Company. The acquisition for the shares by non-residents was allowed because foreign shareholdings in the company had gone below the threshold limit.
According to a statement issued by RBI, "...the aggregate share holdings by NRIs/Persons of Indian Origin in Tai Industries and Madras Aluminum Co under the Portfolio Investment Scheme (PIS) have gone below the prescribed threshold limit stipulated under the extant FBI Policy."
Therefore, the restrictions placed for both Tai and Madras shares were lifted effective immediately. Shareholding details had not been supplied by the two companies.
Foreign Institutional Investors, PIOs and NRIs had been allowed to invest in India's primary and secondary capital markets. The investment would be through the portfolio investment scheme (PIS). The scheme would allow FIIs and NRIs to purchase shares and debentures of Indian firms through India's stock exchanges.
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