RBI allows FIIs to buy shares in IDFC

Permission came after the foreign shareholding in the company went below the prescribed limit

The Reserve Bank today lifted the restrictions placed on FIIs on purchasing shares of IDFC as the foreign shareholding in the company has gone below the prescribed limit.

FIIs are allowed to hold up to 54% in IDFC -- Infrastructure Development Finance Company Ltd.

As of quarter ended June 2013, FIIs had 52.19% holding in IDFC Ltd, according to the BSE data.

"...Foreign share holdings in IDFC Ltd by Foreign Institutional Investors (FIIs)/Non-Resident Indians (NRIs)/ Persons of Indian Origin (PIOs)/Foreign Direct Investment (FDI)/American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) under the Portfolio Investment Scheme (PIS) have gone below the prescribed threshold limit stipulated under the extant FDI Policy," RBI said in a notification.

"Hence, the restrictions placed on the purchase of shares of IDFC Ltd are withdrawn with immediate effect," it added.