The Reserve Bank today said foreign institutional investors (FIIs) are not allowed any longer to purchase shares in Jubilant FoodWorks Ltd as the foreign shareholding in the company has reached the trigger limit.
The aggregate net purchases of equity shares in Jubilant FoodWorks Limited by Foreign Institutional Investors (FIIs) in primary/secondary markets under Portfolio Investment Scheme (PIS) have reached the trigger limit.
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Hence, further purchases of equity shares of this company would be allowed only after obtaining prior approval of the RBI," the central bank said in a notification today. FIIs, NRIs and PIOs are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).
Under the scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges. RBI monitors the ceilings on FII/NRI/PIO investments in Indian 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.
Jubilant FoodWorks and its subsidiary operates Domino's Pizza brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka. In India, it also sells Dunkin' Donuts.
Shares of the company closed 2.03 per cent higher today at Rs 1,268.75 apiece on the BSE.
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