REC gets RBI nod to raises FII stake limit to 35 percentBy IANS
Friday, October 1, 2010
NEW DELHI - State-owned Rural Electrification Corporation (REC) said Friday it has got approval from the Reserve Bank of India to raise the foreign institutional investor stake limit in the company to 35 percent from existing 24 percent.
The RBI’s move would help REC increase its lending for power projects in rural areas.
The RBI has enhanced the limit for purchase of equity shares and convertible debentures of Rural Electrification Corporation by FII, through primary market and stock exchanges, under the Portfolio Investment Scheme from 24 percent to 35 percent of its paid up capital, REC said in a statement.
REC, which provides loan assistance to state electricity boards and state power utilities for investment in rural electrification projects, was granted infrastructure finance company status by the RBI recently.