RBI restricts FIIs from purchasing Federal Bank shares

Written by Press Trust of India | Updated: Aug 21 2013, 02:51am hrs
The Reserve Bank of India (RBI) today restricted foreign institutional investors (FIIs) from purchasing shares in Federal Bank as the overall foreign share holding in the South-based lender has crossed the limit of 49 per cent.

"...foreign share holding by Foreign Institutional Investors (FIIs)/Non Resident Indian (NRIs)/ Persons of Indian Origin (PIOs)/ Foreign Direct Investment (FDI)/American Depository Receipt (ADR)/Global Depository Receipt (GDR) in Federal Bank has crossed the overall limit of 49 per cent of its paid-up capital," RBI said in a notification.

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Therefore, no further purchases of shares of this bank would be allowed through stock exchanges in India on behalf of FII/NRI/PIOs, it added further.

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FIIs registered with SEBI are eligible to purchase shares and convertible debentures issued by Indian companies under the Portfolio Investment Scheme (PIS).