Even though FIIs reportedly exhaust over 95 percent of their USD 25 billion investment limit in government debt, Rajan hinted that there is no need to increase the limit immediately.
The move has been necessitated because of the Reserve Bank's August 20 press release prohibiting foreign institutional investors, non resident Indians and persons of Indian origin from purchasing shares in Federal Bank as its foreign holding has crossed 49 percent.
After three days of slumber, the bull has finally awoken. Summarizing the trades of the day, Udayan Mukherjee, Managing Editor of CNBC-TV18 says that what began as a quiet session, turned into a blockbuster breakout rally for the markets.