The Reserve Bank of India today notified that M/s. Rural Electrification Corporation Limited has passed a resolution at the board of directors' level and at the Extra Ordinary General Meeting to enhance the limit for purchase of its equity shares and convertible debentures by Foreign Institutional Investors (FIIs), through primary market and stock exchanges, under the Portfolio Investment Scheme from 24 per cent to 35 per cent of its paid up capital.

Foreign Institutional Investors can now purchase equity shares and convertible debentures of M/s. Rural Electrification Corporation Limited through primary market and stock exchanges under the Portfolio Investment Scheme, provided :

(i) The overall limit for FII's purchases has now been raised to 35 per cent.

(ii) The purchases of equity shares by a single FII/SEBI approved sub-account of a registered FII in the company does not exceed 10% (ten per cent) of the paid-up equity capital of the company.

 Ajit Prasad
 Assistant General Manager

Press Release : 2010-2011/457