FIIs not allowed to purchase shares in IDFC beyond 52.5%

Tags: News
Foreign investors won't be allowed to buy shares in IDFC Limited beyond 52.5 per cent as the company has decreased the limit for foreign shareholding.

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.

Post new comment

E-mail ID will not be published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

EDITORIAL OF THE DAY

  • Regional parties that brought diversity to Indian democracy are at a dead end

    In the two decades, which began in 1989, when the paradigm of coalition politics came to dominate central governments, it would have sounded far-fetch

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Kuruvilla Pandikattu SJ

What we can learn from agnosticism

As an agnostic, the American writer David Breeden is aware ...

Shona Adhikari

When women to birds become a painter’s muses

This week the focus is on renowned artist Amitabha Banerjee, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture