RBI Restricts Foreign Investors From Buying Shriram Transport Finance Shares

RBI Restricts Foreign Investors From Buying Shriram Transport Finance Shares
Mumbai: Foreign investors have been restricted by the Reserve Bank of India (RBI) to buy further shares in Shriram Transport Finance Company Ltd as their holding has gone beyond the permitted limit.

The foreign shareholding through foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) in Shriram Transport Finance has crossed threshold ban limit of its paid-up capital.

"Therefore, no further purchase of shares of this company would be allowed through stock exchanges in India on behalf of FII/RFPIs," it said in a notification.

FIIs held a 54.18 per cent stake in the company as of quarter ended September 2015, data available on BSE showed.

FIIs, NRIs and PIOs (persons of Indian origins) can invest in primary and secondary capital markets in India through portfolio investment schemes (PIS).

The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis and has fixed the cut-off two percentage points lower than the actual ceiling.

Shares in Shriram Transport Finance, on Tuesday, ended 0.6 per cent higher at Rs 973.70 apiece on the BSE, whose benchmark Sensex index finished 0.2 per cent lower.