The Reserve Bank of India (RBI) today said aggregate shareholding of foreign institutional investors (FIIs), NRIs and persons of Indian origins (PIOs) under the portfolio investment scheme in Bank of Baroda (BoB) have gone below the prescribed threshold limit.
"The aggregate share holdings in BoB by FIIs or NRIs or persons of Indian origins [PIOs] under the portfolio investment scheme [PIS] have gone below the prescribed threshold limit stipulated under the extant foreign direct investment policy," the RBI said in a notification.
The central bank, however, did not disclose any details about what per cent it has come down and the prescribed threshold limit as well.
The RBI further said that the restrictions placed on the purchase of shares of the bank are withdrawn with immediate effect.
"It will, therefore, be in order to purchase the shares of the bank in the secondary market on behalf of FIIs or NRIs or PIOs clients who have obtained permission to invest under the PIS subject to the existing ceilings and guidelines..." the RBI notification added.
As per the BSE data, the state-owned bank's FII shareholding has been experiencing a continuous downward trend for the last three quarters.
The aggregate shareholding in BoB by the FIIs was 14.34% in July-September 2011, 13.61% in October-December 2011 and 13.54 in the period of January-March 2012, the data showed.
The shares of the bank closed at Rs 744.15, down by 2.04% at the BSE today.