The Reserve Bank has lifted ban imposed on foreign investors to buy shares in Bank of Baroda as the foreign shareholding under portfolio investment scheme (PIS) in the bank has gone below prescribed limit.
RBI said aggregate share holdings by Foreign Institutional Investors/Registered Foreign Portfolios Investors/Non-Resident Indian/Persons of Indian origin (PIOs) under PIS in Bank of Baroda have gone below the prescribed threshold caution limit.
FIIs held 16.95 per cent shares in Bank of Baroda as of quarter ended June 2014, according to BSE data.
"Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect. Equity shares of Bank of Baroda can now be purchased through primary market and stock exchanges," RBI said in a release.
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
Shares on the Bank of Baroda closed 0.53 per cent lower at Rs 831.85 per scrip on the BSE today.
