The Reserve Bank today said foreign investors cannot buy equity shares in South Indian Bank (SIB) through stock exchanges as the foreign shareholding limit in the bank ahs reached the trigger level.
The apex bank said that foreign shareholding in South Indian Bank has crossed the prescribed threshold limit as per extant FDI policy.
"Hence, further purchases of equity shares of this company would not be allowed through Stock Exchanges in India on behalf of FIIs/RFPIs/NRIs/PIOs and through FDI/ADRs/GDRs," it said in a notification.
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FIIs held 40.45 per cent stake in the bank as of June 30, 2014, according to the BSE data.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).
The 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 ceiling.
