The Reserve Bank has allowed micro and small enterprises (MSEs) who have de-registered their small scale industry status to sell stake to foreign investors to help them attract funds. It has been decided that such companies may issue shares or convertible debentures to a person resident outside India. It also allowed industrial units not into MSE to issue shares in excess of 24 percent of its paid up capital with approval of the government. They can also issue shares or debentures if they are not engaged in manufacturing of items reserved for small scale sectors. The RBI decision will help small units finance their expansion programme in the allowed sectors.