FIIs need RBI nod for further purchase of GSFC shares

Foreign shareholding in Gujarat State Fertilizers & Chemicals Ltd (GSFC) for FIIs has hit the trigger limit and any further purchases of company's shares by them will require the Reserve Bank's approval.
As of quarter ended September 2014, FIIs held 19.10 per cent shares in the company, as per data on the BSE.
"...The foreign shareholding through Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) in Gujarat State Fertilizers & Chemicals Ltd has reached the trigger limit.
"Therefore, further purchases of equity shares of this company would be allowed only after obtaining prior approval of the RBI," the central bank said in a release.

Similarly, approval would be required for purchase shares in Deccan Gold Mines Ltd, RBI said in a separate release.
"...The foreign shareholding through Non-Resident Indians (NRI)/Persons of Indian Origins (PIOs) in M/s Deccan Gold Mines Ltd. Has reached the trigger limit."

Therefore, further purchases of equity shares of this company would be allowed only after obtaining prior approval of RBI, it added.
FIIs held 3.05 per cent shares in the gold miner as of September 30, 2014.
FIIs, RFPIs, NRIs and Persons of Indian Origins (PIOs) can invest in primary and secondary capital markets in India through 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.