The Reserve Bank today allowed foreign investors to buy shares in South Indian Bank as the foreign shareholding in the bank has gone below the prescribed limit.
"...The foreign share holding through Foreign Institutional Investors/Non-Resident Indians)/Persons of Indian Origin/Foreign Direct Investment/American Depository Receipt/Global Depository Receipts in The South Indian Bank have gone below the prescribed threshold caution limit, stipulated under the extant FDI policy," RBI said.
Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect, it added.
"Equity shares of South Indian Bank can now be purchased through primary market and stock exchanges," RBI said.
FIIs, NRIs and PIOs are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).
Under the scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges.
RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
For effective monitoring of foreign investment ceiling limits, the RBI has fixed cut-off points that are two percentage points lower than the actual ceilings.
