Shriram Transport gains after RBI allows equity purchases by FIIs

RBI said that FIIs/FPIs can now purchase upto 74% of the paid-up capital of Shriram Transport

Shares of Shriram Transport Finance Company (STFC) were up nearly 2% at Rs 951 after the Reserve Bank of India in a release on Wednesday said that the foreign shareholding by  Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs)  have gone below the revised threshold limit.

The RBI in a notification said can now invest up to 74% of the paid-up capital of (STFC) under the portfolio investment scheme. Hence, the restrictions placed on the purchases of shares of the above company vide press release no. 957 dated October 20,2015 are withdrawn with immediate effect.

The stock opened at Rs 973 and touched a high of Rs 974. At 12:55pm, over 564,000 shares were traded on both the stock exchanges.