Reserve Bank today allowed FIIs to buy shares in Pantaloon Retail Ltd as the foreign shareholding in the Future Group firm has gone below the prescribed limit.
Removing Pantaloon from its ban list, RBI said that the foreign share holding by Foreign Institutional Investors (FIIs) in Future Retail (Pantaloon Retail Ltd) have gone below the prescribed threshold limit under the FDI policy.
"Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," RBI said in a notification.
Earlier in January this year, RBI had placed restriction on FIIs to purchase shares in Pantaloon Retail as the foreign shareholding had crossed the overall permissible limit of 24 per cent of paid-up capital.
FIIs, NRIs and PIOs (Persons of Indian Origins) are allowed to invest in the primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).
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 ceilings.
Pantaloon Retail shares closed at Rs 85.75 per scrip on the BSE today, up 0.18 per cent from the previous close.
