RBI allows Marico Kaya Enterprises to increase FII limit to 40%

Reserve Bank of India (RBI) has notified that foreign institutional investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 40 percent of the paid up capital of Marico Kaya Enterprises under the Portfolio Investment Scheme.

The Reserve Bank has stated that the company has passed resolutions at its 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. The purchases could be made through primary market and stock exchanges and would be subject to Regulation 5(2) of FEMA Notification No.20 dated May 03, 2000 (as amended from time to time) and other terms and conditions stipulated by the Reserve Bank.

Marico Kaya Enterprises (MaKE) was incorporated on January 19, 2013 as a wholly owned subsidiary of Marico. In October 2013, MaKE demerged from Marico and is now a separate company. MaKE owns the specialized skin care business of Kaya (erstwhile a subsidiary of Marico).