Kingfisher Airlines Ltd(KING.NS), in stake sale talks with Abu Dhabi's Etihad Airways and other investors, has capped foreign portfolio investment in the company at 3 percent, carving space for a foreign investor to buy as much as 46 percent of the embattled carrier.
India allows foreign investment of up to 49 percent in local carriers. Overseas institutional investors currently hold 2.46 percent of Kingfisher, according to stock exchange data.

Source - http://in.reuters.com