RBI restricts foreign investors' buying in South Indian Bank

The Reserve Bank today restricted purchase of shares in South Indian Bank by foreign investors as the prescribed limit reached the trigger level.
RBI said the foreign shareholding through Foreign Institutional Investors, NRIs, PIO, Foreign Direct Investment, Global Depository Receipts has reached the trigger limit.
"Hence, further purchases of equity shares of The South Indian Bank Ltd. Would be allowed only after obtaining prior approval of the Reserve Bank of India," RBI said in a release.
Shareholding in South Indian Bank by FIIs was at 43.96 per cent, as per data available on the BSE.
Shares of the bank today closed at Rs 22.40 apiece on the BSE, up 0.67 per cent from the previous close.

FIIs, NRIs and PIOs are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).

Under the scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges.
RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
For effective monitoring of foreign investment ceiling limits, RBI has fixed cut-off points that are two percentage points lower than the actual ceilings.