The Reserve Bank of India (RBI) has allowed foreign investors to buy further shares in South Indian Bank (SIB) as the holding by FIIs has gone below the limit.
"...the aggregate share holding by Foreign Institutional Investors (FIIs)/Non-Resident Indians (NRIs)/Persons of Indian Origin (PIOs)/Foreign Direct Investment (FDI)/American Depository Receipt (ADR)/Global Depository Receipts (GDRs) under the Portfolio Investment Scheme (PIS) in The South Indian Bank Limited have gone below the prescribed threshold caution limit," RBI said.
Hence restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect, he said.
Further, RBI said all the approvals received against the said scrip are duly cancelled.
"Equity shares of The South Indian Bank Limited can now be purchased through primary market and stock exchanges," RBI added.
FIIs, held 41.69 per cent shares in South Indian Bank as of quarter ended March 31, 2014. Shares of the bank today closed at Rs 24.60 apiece on the BSE, up 1.44 per cent from the previous close.
FIIs, NRIs and PIOs are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).
RBI monitors ceilings on FII/NRI/PIO investments in companies on a daily basis.
For effective monitoring of foreign investment ceiling limits, the RBI has fixed cut-off points that are two percentage points lower than the actual ceilings.