Foreign investors can now buy more shares in HDFC Bank as the Reserve Bank has removed restrictions imposed on it with immediate effect.
Foreign investors can now buy more shares in HDFC Bank as the Reserve Bank of India has removed restrictions imposed on it with immediate effect.
The aggregate foreign shareholding through ADR/GDR/FIIs/FPIs/FDI/NRIs/PIOs in HDFC Bank have gone below the prescribed limit stipulated under the extant FDI Policy, RBI said in a notification.
"Hence the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," RBI said.
FIIs, NRIs and PIOs (Persons of Indian Origin) can invest in primary and secondary capital markets in India through portfolio investment scheme (PIS).
RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis and has fixed the cut-off points two percentage points below the actual ceiling.
Till the quarter ended December 31, 2016, promoter shareholding in the bank was at 26.09 per cent.
Stock of HDFC Bank today closed 0.37 per cent higher at Rs 1327.35 on BSE.
In a separate notification, Reserve Bank said it has included Capital Small Finance Bank and Equitas Small Finance Bank in schedule of RBI Act, 1934.