In 2004-05 so far, 16 companies have got shareholder approval to increase their FIIs limits by up to 100 per cent. Many of them have even received Reserve Bank of India approval to do so.

As many as 16 firms propose to raise $2.34 billion (Rs 10,800 crore) in funds for expansion programmes through foreign currency convertible bonds.

These companies may also have to seek shareholder approval for raising the FIIs limits in them before the conversion of FCCBs.

Companies that are raising their FIIs limit are doing so to accommodate an increase in the FII holding in them after the conversion of their foreign currency convertible bonds.

Most of these companies are raising FCCBs which will be converted into equity shares some five years from now.

Mahindra & Mahindra has proposed to increase the FII limit from 24 per cent to 35 per cent. On June 31, 2004, the FIIs held 22.07 per cent of M & M's equity. The company's latest move to raise the FII limit was to accommodate its $100 million FCCB issue to raise Rs 450 crore for its expansion.

Several medium-sized software companies too are planning to raise the FII limit to 100 per cent. Geometric Software and Maars Software are raising the FIIs limit up to 100 per cent.

SSI, Subex Systems and Hexaware Technologies are raising the ceiling to 74 per cent from the current level. Cranes Software proposes to raise the limit to 49 per cent from 24 per cent while Mastek wants to jack up the limit to 49 per cent.

Among others that are seeking to raise the FII limit are Arvind Mills, Pantaloon Retail, United Phosphorus, Amtek Auto and J&K Bank. Arvind Mills proposes to raise it to 49 per cent from 24 per cent, Pantaloon Fashion to 40 per cent from 24 per cent, Amtek Auto from 49 per cent to 74 per cent and Godrej Consumer wants to raise it to 35 per cent.