South Indian Bank surges; RBI removes foreign buy restrictions

Reuters Market Eye - Shares in South Indian Bank gain 3.5 percent after RBI on Monday withdrew restrictions placed on the purchase of shares by overseas investors.

The RBI regularly prevents foreign institutional investors from buying shares in companies if they are approaching the limit stipulated by regulations, and will then re-adjust once foreign ownership falls below the prescribed level.

Foreign investors held 41.7 percent of South Indian Bank shares as of end-March, according to BSE data.

(Reporting by Indulal P)