Shriram Transport Finance drops as RBI bans further purchases by FIIs

The RBI said that shareholding by FIIs/FPIs has crossed the threshold ban limit of its paid-up capital

Shares of Shriram Transport Finance were down over 5% at Rs 923 after the Reserve Bank of India in a release on Thursday disallowed further purchases of equity shares of the company through stock exchanges by Foreign Institutional Investors (FIIs) and Registered Foreign Portfolio Investors.

The foreign shareholding through FIIs/FPIs in Shriram Transport Finance Co. Ltd has crossed the threshold ban limit of its paid-up capital therefore no further purchases of shares of this company would be allowed through stock exchanges in India, the RBI said in a release on Tuesday.

The stock opened at Rs 960 and touched a low of Rs 912. At 12:20pm, over 640,000 shares were traded on both the stock exchanges.