Foreign investors are permitted further purchases of equity shares in private sector South Indian Bank as the prescribed 49 per cent threshold caution limit stipulated under the extant FDI policy has come down.
Foreign shareholding by ADR/GDR/FIIs/RFPIs/NRIs/FDIs/PIOs in South Indian Bank has reached the trigger limit, a Reserve Bank notification said today.
"Hence further purchases of equity shares of this company would be allowed only after obtaining prior approval of the Reserve Bank of India," RBI added.
Foreign portfolio investors held 34.82 per cent of the paid-up capital in the bank, NRIs 2.46 per cent and DB International (Asia) 1.51 per cent as on December 31, 2016 as per data from BSE.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.
The RBI monitors ceilings on FII/NRI/PIO investments in Indian companies on a daily basis and has fixed the cut-off points two percentage points lower than the actual ceiling.
Stock of South Indian Bank closed 0.25 per cent down at Rs 20.30 on BSE.
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