The Reserve Bank of India will now regularly release the names of companies which have reached 24 per cent limit on foreign investment and companies which are on the verge of reaching this limit. To begin with, the names will be released on the Reuters screen and the Reserve Bank of India's website on the Internet (address:http://www.reservebank.com). The decision has been taken to facilitate investments by foreign institutional investors(FIIs)/non resident Indians(NRIs)/overseas corporate bodies(OCBs) in companies in India in accordance with the prescribed norms.

In terms of the Government of India guidelines issued in September 1992, FIIs are allowed to invest in the Indian capital market subject to, among other things,the condition that their overall investment in any company will not exceed 24 per cent of the paid up capital of the company. The overall limit of 24 per cent also includes investment by NRIs/OCBs under the portfolio investment scheme. The Reserve Bank of India monitors the foreign investments in companies on a daily basis. It alerts all the designated bank branches as soon as foreign investments in a company reaches 20 per cent. Designated bank branches are required to obtain the Reserve Bank of India's prior clearance before purchasing further shares on behalf of their FII/NRI/OCB clients once foreign investments in a copany has reached 20 per cent limit. The Reserve Bank gives clearance in such cases on a first-cum-first-served basis till the 24 per cent limit is reached. As per the list released today, 14 companies have reached the 24 per cent limit of foreign investment. These include:

Companies in which 24 per cent limit has been reached and no fresh purchases are allowed

1. Shivalik Projects Ltd.
2. Salora International Ltd.
3. Maral Overseas Ltd.
4. Jaiparabolic Springs Ltd.
5. Modiluft Ltd.
6. Zee Telefilms Ltd.
7. Infosys technologies Ltd.
8. Unitech Ltd.
9. Mastek Ltd.
10. Housing Development Finance Corporation Ltd.
11. Satyam Computers Services Ltd.
12. Polyplex Corporation Ltd.
13. Nagarjuna Constructions Ltd.
14. Patheja Forgings Auto Parts Manufacturing Ltd.

Companies having reached the 20 per cent alert limit are seven. These include:

Companies in which 20 per cent limit has been reached and require prior RBI clearance for further purchases

1. W.S. Industries Ltd.
2. WSL Industries Ltd.
3. PVD Plast Mould Ltd.
4. Essel Packaging Ltd.
5. Max India Ltd.
6. State Bank of India
7. Carrier Aircon Ltd.

In the case of State Bank of India, though only 20 per cent limit had been reached, no further purchases will be allowed in view of the condition stipulated by the Government of India while approving their GDR issue.

Alpana Killawala
Deputy General Manager

Press Release : 1996-97/570