RBI restricts FIIs from purchasing Federal Bank shares

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SummaryRBI restricted 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.

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).

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