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RBI hikes Yes Bank’s foreign holding limit to 74%

Mumbai, June 12: Reserve Bank of India (RBI) increased private sector Yes Bank’s foreign holding limit to 74 per cent of the paid-up capital, under the portfolio investment scheme. RBI, in a release here said foreign institutiol investors (FIIs) and registered foreign portfolios investors (RFPIs) can now invest up to 74 per cent, from the existing 60 per cent, of the paid-up capital of Yes Bank under the Portfolio Investment Scheme (PIS). “Yes Bank 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 by FIIs/RFPIs,” the release said. Investors can make the purchases through the primary market and stock exchanges, it added. A union cabinet panel had last month approved Yes Bank’s proposal to increase foreign investment limit in the bank to 74 per cent, entailing FDI inflows of up to $1 billion. It got the approval to raise the limit without any sub- limits for investment by way of issue of non-equity shares and/or other permissible instruments to eligible non-resident investors. Yes Bank already has an ebling approval from its board to raise an additiol $1 billion of equity capital. (IANS)