IDFC has dipped over 9% at Rs 86, its lowest value since May 2009 on BSE, extending its previous day’s fall, after the company barred fresh purchases of its shares by foreign institutional investors (FIIs) and non-resident Indians (NRIs). The stock has fallen nearly 17% in past two trading sessions.
The infrastructure finance company also revised the ceiling on investment by FIIs and NRIs to 54% from 74%.
IDFC imposed these restrictions to help it meet the Reserve Bank of India’s (RBI) restriction on foreign investment (at less than 50% for new banks) in case it gets a license.
The current FII holding in IDFC is 53.7%, slightly lower than the new cap, but the move will bring down IDFC's weightage in the MSCI benchmark, the media report suggests.
IDFC has around 1.1% weightage in the MSCI index. MSCI may also remove the stock from its global benchmark, the NDTV report suggests.
The stock opened at Rs 89.90 and has seen a combined 8.4 million shares changing hands on the counter in early morning deals on BSE and NSE.
The infrastructure finance company also revised the ceiling on investment by FIIs and NRIs to 54% from 74%.
IDFC imposed these restrictions to help it meet the Reserve Bank of India’s (RBI) restriction on foreign investment (at less than 50% for new banks) in case it gets a license.
The current FII holding in IDFC is 53.7%, slightly lower than the new cap, but the move will bring down IDFC's weightage in the MSCI benchmark, the media report suggests.
IDFC has around 1.1% weightage in the MSCI index. MSCI may also remove the stock from its global benchmark, the NDTV report suggests.
The stock opened at Rs 89.90 and has seen a combined 8.4 million shares changing hands on the counter in early morning deals on BSE and NSE.
