RBI lifts curbs on share purchase of ING Vysya Bank by FIIs

The Reserve Bank has removed curbs on purchase of equity shares of ING Vysya Bank by foreign investors as such investment has gone below the prescribed threshold under FDI policy.

The aggregate share holdings in ING Vysya Bank by Foreign Institutional Investors (FII)/Registered Foreign Portfolios Investors (RFPI)/Non-Resident Indians (NRI)/Persons of Indian Origin (PIO) and through American Depository Receipts (ADR)/Global Depository Receipts (GDRs)/Foreign Direct Investment (FDI) have gone below the prescribed threshold caution limit under the FDI policy, RBI said in a notification.

"Hence the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," it added.

FIIs held 27.81% shares in the bank as of quarter ended September 30, 2014.

FIIs, NRIs and PIOs (Persons of Indian Origins) 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.

The shares of the bank today closed at Rs 634 per share on the BSE, up 1.8% from the previous close.