Yes Bank shares surge 4% as RBI allows FIIs to buy equity

Shares of Yes Bank rose about four per cent today, adding Rs 1,167.16 crore to its market valuation, 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.
Yes Bank's scrip rallied 4.01 per cent to settle at Rs 703.40 on the BSE. During the day, it gained 4.25 per cent to Rs 705.
At the NSE, it jumped 3.78 per cent to end at Rs 701.
Following the rally in the stock, the company's market valuation rose by Rs 1,167.16 crore to Rs 29,305.16 crore.

In terms of volume, 5.06 lakh shares of the company changed hands at the BSE, while over 49 lakh shares were traded at the NSE during the day.
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 The restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect," an RBI notification had said yesterday.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.