RBI stops Repco Home Finance and South Indian Bank from FII purchases
The Reserve Bank of India (RBI) on Friday said foreign investors cannot purchase shares of Repco Home Finance and South Indian Bank as their shareholding in these companies has crossed the threshold limit. This is in a way a good news as there is so much demand for these shares in the market that they are already taken up by the investors, and on the other hand the bad news is that the new foreign investors will not get a chance to invest in these companies.
In the case of Repco Home Finance, the shareholdings by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) under the Portfolio Investment Scheme (PIS) in the company have crossed the limit of 24 % of its paid-up capital. Therefore, no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of FIIs/RFPIs.
In the case of South Indian Bank, the RBI said the foreign shareholding through FIIs/ RFPIs/ Non Resident Indians (NRIs)/ Persons of Indian Origin (PIO)/ Foreign Direct Investment (FDI)/American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) in the Bank has crossed the prescribed threshold limit as per extant FDI policy. This is in a way good news for the bank as it is now investment rich and should look at utilising the funds properly so that the investors receive a handsome return on their investments.
Source- The Hindu Business Line
business and finance, Economy, economy (general), Foreign investors, RBI and other central banks, regulatory bodies and rulings (commercial, Repco Home Finance, Reserve Bank of India, shareholding limit, South Indian Bank, threshold limit
