Future Retail given the go ahead to increase its registered portfolio foreign investors

By

Isabelle Crossley

Published
Mar 20, 2018

On March 19, the Reserve Bank of India (RBI) gave Future Group’s subsidiary, Future Retail, approval for raising its limit on registered portfolio foreign investors (RPFI) to 49 percent of its paid up capital.

Future Retail will now be able to raise its RPFI limit to 49 percent from its current 24 percent limit after securing RBI approval. RBI approval is legally necessary as the Union Government is increasingly keeping an eye on foreign investment in the country.

"We would like to inform you that Reserve Bank of India has issued a press release dated March 19, 2018 relating to increase in the limits for investment in the equity share capital of the Company by Registered Foreign Portfolio Investors (RPFls) including Foreign Institutional Investors (FIIs) up to 49 per cent of the paid-up capital of the Company," said Future Retail in a regulatory filing on Monday. 

Following the RBI’s decision to allow Future Retail to raise its RPFI limit to 49 percent, the business’ stocks climbed by 3.4 percent on the morning of March 20 during early trading hours. At 9:17am on March 20, Future Retail was quoting 539.9 rupees per stock, up by 12.9 rupees (2.45 percent) on the Bombay Stock Exchange (BSE).