Reserve Bank has restricted overseas investors to make further investment in South Indian Bank as the prescribed foreign shareholding limit has reached the trigger limit. The foreign shareholding by ADR/GDR/FIIs/RFPIs/NRIs/Foreign Direct Investment (FDIs)/Persons of Indian Origin (PIOs) in South Indian Bank Ltd has reached the trigger limit, the RBI said in a notification.
“Hence, further purchases of equity shares of this company would be allowed only after obtaining prior approval of the Reserve Bank of India,” RBI said. As on June 2016, foreign portfolio investors had 33.66 per cent in South Indian Bank, while foreign individuals/NRIs had 7.52 per cent, according to data on BSE.
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FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS. The RBI monitors the 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. Shares of the bank closed 1.28 per cent higher at Rs 23.65 on BSE.