Hathway Cable and Datacom has received approval from Reserve Bank of India (RBI) to increase the foreign direct investment in the company from the current 49% to 74%. The MSO had earlier received a nod from the Foreign Investment Promotion Board (FIPB).
“This would be subject to the Regulation 5(2) of FEMA Notification No.20/2000 RB dated May 03, 2000 (as amended from time to time) issued under FEMA, 1999,” a notice from the RBI said.
RBI has also advised all Custodian Banks that since the foreign share holding by FIIs/RFPIs in M/s Hathway Cable & Datacom Limited have gone below the revised threshold limit stipulated under the extant FDI Policy. Hence, the restrictions placed on the purchase of shares of the above company vide our letter no. FE.CO. FID /13457 /11.01.091 /2014-15 dated February 20, 2015 are withdrawn with immediate effect and hence Equity shares of M/s Hathway Cable & Datacom Limited can now be purchased through primary market and stock exchanges.
They further advised the custodian banks to bring this to notice of their designated branches, which are entrusted with the work relating to investments on behalf of GDR/ADR/FDI/NRI/PIO/FII/RFPIs under the Portfolio Investment Scheme.