No decision on lower FII cap on holdings in pvt banks

A Clarification

The government has clarified that "at the current moment" it has not taken any decision to reduce the cap on the holdings of foreign institutional investors (FIIs) and non-resident Indians (NRIs) in private banks from 49 per cent to 26 per cent.

Responding to a report published in Business Standard on Wednesday (26 per cent cap on FII holding in pvt banks), a finance ministry news release stated that no official communication in this matter has been issued.

The BS report was based on discussions with two senior finance ministry officials. The report had stated that Finance Minister Jaswant Singh had cleared the proposal for reducing the cap in FII and NRI holdings in private banks and a notification to give effect to the proposal would be issued soon.