RBI allows foreign investors to increase stake up to 49 per cent in Tejas Networks

The Reserve Bank of India (RBI) has allowed foreign investors to increase their stake to 49 per cent (from the earlier 24 per cent) in telecom infrastructure firm Tejas Networks. Foreign institutional investors/foreign portfolio investors can now invest up to 49 per cent from the earlier default limit of 24 per cent and non-resident Indians can invest up to 24 per cent from the earlier default limit of 10 per cent of the paid-up capital of Tejas Networks. The investment allowance is in line with the portfolio investment scheme. Earlier, Tejas Networks had passed a resolution at the board of directors’ level and a special resolution had been passed by shareholders, agreeing to enhance the investment limits.