RBI allows JustDial to raise foreign shareholding to 75%

The Reserve Bank of India (RBI) has allowed domestic search engine Just Dial to raise the foreign shareholding limit to a maximum of 75 per cent of its paid-up capital under the portfolio investment scheme (PIS).

Foreign institutional investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 75 per cent (revised from earlier limit of 49 per cent) of the paid-up capital of Just Dial Limited under PIS, RBI said in a notification.

The decision to raise such investment limit came after the company passed resolutions at its board of directors' level and a special resolution by shareholders, agreeing to enhance the limit of its equity shares and convertible debentures by FIIs. FIIs held 26.64 per cent shares in the company as of September 30, 2014.

FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.

The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis and has fixed the cut-off points two percentage points lower than the actual ceiling. Just Dial shares on Thursday closed at Rs 1,566.05 per share on the BSE, down 0.27 per cent from the previous close.