Kaveri Seed drops as RBI caps further FII investment

Shareholding by FIIs/FPIs has reached the trigger limit

Shares of Kaveri Seed were down nearly 4% to Rs 840 after the Reserve Bank of India said further purchase of equity shares of the company by overseas investors would require prior approval of the central bank.

Shareholding of foreign institutional investors/registered foreign portfolio investors in Kaveri Seed Company Ltd has reached the trigger limit, the Reserve Bank of India said in a release on Monday.

As of March 31, 2015, shareholding of foreign institutional investors stood at 22.26% of the paid-up capital of the company, as per data available on the Bombay Stock Exchange.

The stock opened at Rs 873 and touched a low of Rs 832. At 12:25PM, over 69,000 shares were traded on both the stock exchanges