Foreign Institutional Investors (FIIs) would not be allowed to buy further shares in media firm DB Corporation, widely known as Dainik Bhaskar Group, as foreign shareholding in the firm has reached trigger limit.
Incorporating D B Corp into its caution list, RBI today said the foreign shareholding through FIIs, NRIs, Persons of Indian Origins, Foreign Direct Investment and Depositary Receipts has reached the trigger limit.
"Hence, further purchases of equity shares of D B Corp Ltd would be allowed only after obtaining prior approval of the RBI," it said in a release.
FIIs, NRIs and PIOs 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.
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.
FIIs had 17.73 per cent holding in D B Corp as of December 31, 2012, as per BSE data. Company shares closed at Rs 310.80 per scrip, down 0.69 per cent from previous close.
D B Corp prints and publishes newspaper in four languages across 14 states. It is also into radio business in seven states and 17 cities along with web presence.
