IDFC asks custodians to stop buying shares for FIIs, NRIs

IDFC has written to custodian banks, entities who act on behalf of foreign investors, to not make any further purchase of IDFC shares through the secondary market on behalf of their foreign institutional investor(FII) and non-resident Indian (NRI) clients. 

 

“…the Company has advised all the custodian banks vide its email dated August 26, 2013 to not make any further purchases through secondary markets on behalf of their Fll & NRI clients with immediate effect,” said the company announcement available on its website.  

The communication follows a central bank directive for decreasing the foreign investment limit in an Indian company. This brought down the ceiling for foreign shareholding in the company from 74% to 54%. 

 

Current foreign shareholding in IDFC is 53.71%. 

 

The stock was at Rs.101, down 2.42% at the time of writing compared to 0.34% rise in the Sensex. 

 

Shareholders in the company include the Government of Singapore and the Vanguard Emerging Markets Stock Index Fund. Others include HSBC Global Investment and JP Morgan Sicav Investment Company.

 

There were 460 foreign institutional investors in the company at the end of June, according to the details on shareholding filed by the company.