Business, Economy & Banking Current Affairs

RBI allowed FIIs to purchase 30% shares in Dabur

The Reserve Bank of India (RBI) allowed Foreign Institutional Investors (FIIs) to purchase shares in Dabur India up to 30% of the firm’s paid up capital.

  • FIIs have been allowed to buy more shares in Dabur India as the company has passed a special resolution to increase the limit for purchase of its equity shares and convertible debentures by FIIs.
  • As indicated by the data available on the Bombay Stock Exchange (BSE), FIIs held 19.94% shares in Dabur India as of quarter ended December 2013. 

Under the Portfolio Investment Scheme (PIS), Foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India. They can acquire shares/debentures of Indian companies through the stock exchanges.

Note: The ceilings on FIIs/ NRIs)/ PIOs) investments in Indian companies are monitored by RBI on a daily basis.  For effective monitoring of foreign investment ceiling limits, the RBI has fixed cut-off points that are 2% points lower than the actual ceilings.

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Production of iconic Maruti 800 stopped by Maruti Suzuki India Ltd (MSIL)

Screenshot_1Maruti Suzuki India Ltd (MSIL) stopped production of the iconic Maruti 800 car brand that had been the carrier for millions of Indian middle-class families. As per the company’s policy, though the car production has stopped, spare parts will be available for customers for  next 8-10 years, for all the models which have been phased out till date.

Why Maruti Suzuki stopped the production of iconic Maruti 800?
  • The Maruti 800 lost its appeal among urban consumers as car buyers migrated to models such as the Alto and Wagon R from Maruti Suzuki’s stable and the Santro produced by Hyundai Motor India Ltd, among others.
  • Since 2010, due to the stricter emissions regulations, the company halted the sale of car in 13 major cities in India viz. Kanpur, Bangalore, Hyderabad, Pune, Ahmedabad, Agra, Surat, etc.
  • Maruti Suzuki stated that it would be too costly to make the hatchback to meet stricter emission standards (as per intention to cutting pollution) on congested roads.
  • That’s why, MSIL decided to completely stop the production and rolled out the last of its 800 model, but will continue to sell the spare parts of 800 to its customers for next 8 to 10 years. 

Note: Maruti 800 was launched in India in early 1980s and the time of its launch it was priced Rs. 50000 only and at the time of closure of production it was priced at Rs. 2.35 lakh.

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