This Article is From Feb 20, 2015

RBI Restricts Foreigners From Buying Shares in Hathway Cable

RBI Restricts Foreigners From Buying Shares in Hathway Cable

Mumbai: Foreign shareholding in Hathway Cable & Datacom Ltd has reached the prescribed limit and foreign investors would not be allowed to purchase further shares in the company, the RBI said on Friday.

The foreign shareholding through GDRs/ADRs/FDI/NRI/PIO/ FIIs/RFPIs in Hathway Cable & Datacom Ltd has reached the prescribed threshold limit, RBI said in a notification.

"Hence, further purchases of equity shares of this company would not be allowed through stock exchanges in India on behalf of FII/RFPIs/NRI/PIOs and through FDI/ADRs/GDRs...," the RBI said in a notification.

As of quarter ended December 2014, FIIs held 33.82 per cent shares in Hathway Cable & Datacom.

FIIs (Foreign Institutional Investors), NRIs (Non Resident Indians) and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).

ADR stands for American Depositary Receipt while GDR stands for Global Depositary Receipt.

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

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

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