Moneycontrol
Feb 17, 2017 06:06 PM IST | Source: Moneycontrol.com

HDFC Bank off day's high after RBI puts it back in FIIs ban list

In morning trade, more than 2 percent of market capitalisation of the bank traded on exchanges and more than Rs 4,000 crore worth of shares changed hands through block deals that drove the stock to record high of Rs 1,450, up more than 10 percent intraday.


Moneycontrol Bureau


Shares of HDFC Bank, the country's second largest private sector lender, erased more than half of its gains in afternoon trade after the Reserve Bank of India put the bank back on its FIIs ban list less than a day after moving it out.


On Friday afternoon, the Reserve Bank of India notified that the foreign shareholding by American Depository Receipts (ADR)/Global Depository Receipts (GDR)/ Foreign institutional Investors (FIIs)/foreign portfolio investors (FPIs)/ foreign direct investment (FDI)/non-resident Indians (NRIs)/ persons of Indian Origin (PIOs) in HDFC Bank has crossed the overall limit of 74 percent of its paid-up capital.


Therefore, no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of foreign institutional investors/foreign portfolio investors/ non-resident Indians (NRIs)/ persons of Indian origin (PIOs), the RBI said.


On February 16, the RBI had withdrawn the limit for purchase of HDFC Bank shares by FIIs when their shareholding had gone below the prescribed limit stipulated under the extant FDI Policy. This change happened after employees converted their ESOPs into shares. Experts had said this was nothing but a technical adjustment that would not last long.


Therefore, in morning trade today, more than 2 percent of market capitalisation of the bank traded on exchanges and more than Rs 4,000 crore worth of shares changed hands through block deals that drove the stock to record high of Rs 1,450, up more than 10 percent intraday.

At 13:36 hours IST, the stock was quoting at Rs 1,370.00, up Rs 42.65, or 3.21 percent on the BSE.

Posted by Sunil Shankar Matkar

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