RBI restricts Foreign Portfolios Investors (FPIs) to purchase Manpasand Beverages Ltd. (‘company’) shares. RBI notifies that there has been an increase in the foreign investment limit of the company from 24% to 49% of its paid-up capital. RBI further specifies that due to the increase in the investment limit the aggregate shareholding by FPIs has gone below the prescribed FPIs investment limit. Thus, the onus of compliance with the limits prescribed for the company is on the company.
RBI further mentions that Manpasand Beverages Ltd. has passed necessary resolutions of its Board of Directors and General Body as required under the FEMA 1999. The increase in the limit is subject to regulation 5(2) of Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2017 dated November 07, 2017 which gets amended from time to time.
RBI further highlights that Press Release: 2017-2018/1042 dated October 13, 2017, has been withdrawn with immediate effect.