Future Retail rallies 5%, RBI allows FIIs to buy shares

Moneycontrol Bureau

Shares of Future Retail rallied as much as 4.77 percent intraday on Thursday after the Reserve Bank notified that foreign institutional investor (FII) holding in the company has fallen below the threshold limit. Foreign investors can now buy shares of Pantaloon Retail.

"The Reserve Bank on Wednesday notified that foreign shareholding by FIIs in the company has dipped below the prescribed threshold limit stipulated under the RBI policy. Hence the restrictions placed on the purchase of shares of Future Retail were withdrawn," RBI said in its press release.

Earlier in January this year, RBI had placed restriction on FIIs to purchase shares in Pantaloon Retail as the foreign shareholding had crossed the overall permissible limit of 24 percent of paid-up capital. FIIs, NRIs and PIOs (Persons of Indian Origins) are allowed to invest in the primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).