FII buying in V-Mart Retail crosses limit; no further purchase

Written by PTI | Mumbai | Updated: Feb 26 2014, 01:32am hrs
V-Mart RetailForeign investors would not be able to purchase further shares in home grown fashion store V-Mart Retail. Reuters
Foreign investors would not be able to purchase further shares in home grown fashion store V-Mart Retail, as the foreign shareholding in the company has crossed the permitted limit.

The Reserve Bank today said foreign shareholding in the company through Foreign Institutional Investors (FIIs) has crossed the overall limit of 24 per cent of its paid-up capital.

"Therefore, no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of Foreign Institutional Investors," 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).

The 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 BSE, FIIs shareholding in V-Mart Retail stood at 15.13 per cent as of quarter ended December 31, 2013.

Shares of the company today closed at Rs 264.15 apiece on the BSE, down 2.46 per cent from previous close.