Shares in Jubilant Foodworks Ltd, which operates the Domino's Pizza franchise in India, fell 2.4 per cent after the Reserve Bank of India (RBI) on Wednesday said aggregate net purchases of equity shares in the company by foreign institutional investors had reached the prescribed limit.
Accordingly, further purchases of equity shares of the company would be allowed only after obtaining prior approval from the RBI, it added.
FIIs held 45.35 percent in Jubilant Foodworks as of September 30, 2013, exchange data shows.
The RBI regularly prevents FIIs from buying shares in companies if they are approaching the limit stipulated by regulations and then readjusts once foreign ownership falls below the prescribed level.
Copyright: Thomson Reuters 2013