Foreign Holding in Kaveri Seed Reached Trigger Limit: RBI

Mumbai: The Reserve Bank today said foreign shareholding in Kaveri Seed has reached the trigger limit and further equity buys in the company is allowed only after permission.

The foreign shareholding through Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) in Kaveri Seed Company Ltd has reached the trigger limit, the RBI said in a notification.

"Therefore, further purchases of equity shares of this company would be allowed only after obtaining prior approval of the Reserve Bank," it said.

FIIs held 22.26 per cent shares in the company as of quarter ended March 31, 2015.

FIIs, RFPIs, NRIs and Persons of Indian Origins (PIOs) can invest in primary and secondary capital markets in India through portfolio investment scheme (PIS).

The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.

To effectively monitor the limit, the RBI has fixed cut-off points two percentage points lower than the actual ceiling.