FIIs not allowed to purchase shares in IDFC beyond 52.5%
Feb 21 2014 , Mumbai
IDFC Limited has passed resolutions at the board agreeing for decreasing the limit from 54 per cent to 52.5 per cent for the purchase of its equity shares and convertible debentures by Foreign Institutional Investors (FIIs), RBI said.
"...The Reserve Bank advise that the foreign share holding by FIIs in IDFC Limited has crossed the overall limit of its paid-up capital. Therefore, please note that no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of FIIs," RBI said in a notification.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).
However, RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
To effectively monitor the limit, RBI has fixed cut-off points two percentage points lower than the actual ceiling.
As per the data available on the BSE, FIIs shareholding in IDFC stood at 51.39 as on quarter ended December 31, 2013.
Scrip of the company today closed at Rs 95.15 apiece on on BSE, down 1.96 per cent from the close on Thursday.