Shares of Yes Bank rose by 4 per cent today after the Reserve Bank said FIIs can buy equity shares in the private lender as shareholding by foreign investors has gone below the prescribed limit.
Following this, shares of Yes Bank went up by 3.8 per cent to Rs 702 at the BSE. On the NSE, it rose by 3.97 per cent to Rs 702.30. The RBI has removed Yes Bank from its caution list of monitoring foreign investment following the dip in shareholding by foreign investors below the prescribed limit.
” … the restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect,” an RBI notification had said yesterday.
“Equity shares of Yes Bank can now be purchased through primary market and stock exchanges,” it had said.
As per the data available on the BSE, FIIs held 46.30 per cent in Yes Bank as of quarter ended September 2014. RBI monitors ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
For effective monitoring of foreign investment ceiling limits, the Reserve Bank has fixed cut-off points that are two percentage points lower than the actual ceilings.