The NRIs while investing in the equity of a company cannot buy more than prescribed percentage of the paid up capital of that company. What is the prescribed percentage?

Options

A. 2
B. 3
C. 4
D. 5

Answer

D

Explanation

An NRl can purchase up to a maximum of 5% of the aggregate paid up capital of the company (equity as well as preference capital) or the aggregate paid up value of each series of convertible debentures as the case may be. Total investment by NRls cannot exceed 10% of the paid-up capital in an Indian company.