RBI restricts foreign investors from buying shares in Petronet LNG

The Reserve Bank of India  on Friday said foreign investors could pick up fresh stake in Petronet LNG only after taking prior approval as foreign shareholding has reached the permissible limit in the firm.

The foreign shareholding through foreign institutional investors (FIIs)/registered foreign portfolio investors (RFPIs) in Petronet LNG has reached the trigger limit, RBI said in a notification.

For the quarter ended June 30, foreign shareholding in the company was at 22.80 per cent.

FIIs, RFPIs, NRIs and Persons of Indian Origins (PIOs) can invest in primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).

The 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.