FIIs allowed to raise stake in Karur Vysya Bank to 40 per cent

Tags: News
Foreign Institutional Investors (FIIs) have been allowed to raise their stake in private sector lender Karur Vysya Bank to up to 40 per cent.

"...The Karur Vysya Bank Ltd has passed a resolution at its Board of Directors' Meeting and a resolution agreeing for the purchase of its equity shares by FIIs up to 40 per cent of their paid-up capital through primary/secondary markets in India," Reserve Bank said in a release today.

The approval to the Karur Vysya Bank for raising FII investment limit to 40 per cent is subject to the condition that aggregate foreign investment in the bank should also not exceed the composite sectoral cap of 49 per cent (49 per cent under automatic route and beyond 49 per cent to 74 per cent under government Route), RBI said.

Under the existing conditions, RBI should be informed about acquisition or transfer of shares of 5 per cent and more of a private sector bank by FIIs.

FIIs, NRIs and PIOs are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).

Under the scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges.

RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.

For effective monitoring of foreign investment ceiling limits, RBI has fixed cut-off points that are two percentage points lower than the actual ceilings.

As per data on the BSE, the stake of FIIs in the bank stands at 24.89 per cent as of September 2013.

Karur Vysya scrips traded 1.88 per cent lower at Rs 344.90 per share as the close of market on BSE today.

Post new comment

E-mail ID will not be published
This question is for testing whether you are a human visitor and to prevent automated spam submissions.


  • The budget is sound in logic; the market is too clever by half

    For a man derided by former finance minister P Chidambaram for his knowledge of economics as only sufficient to be scribbled on the back of a postage


Stay informed on our latest news!


GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India


Arun Nigavekar

Why higher education needs innovation

India is such a great country that it creates complexity ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...


William D. Green

Chairman & CEO, Accenture