Contact Your Financial Adviser Money Making MC
17
February 2017
Private
sector HDFC Bank has again crossed the foreign investment limit prescribed as a
percentage of paid-up capital for Indian companies, the Reserve Bank of India
(RBI) said on Friday. The Total Investment
& Insurance Solutions
Only
a day earlier, on Thursday, the RBI announced that such investments had fallen
below the ceiling. The Total Investment & Insurance
Solutions
The
apex bank had said that foreign investors' holdings in HDFC Bank had fallen
below the threshold limit prescribed under the foreign direct investment (FDI)
policy.
In
a raction, foreign investors bought the stock, crossing then limit.
"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 M/s HDFC Bank Ltd has crossed the overall
limit of 74 per cent of its paid-up capital." an RBI statement said on
Friday. The Total Investment & Insurance
Solutions
"Therefore,
no further purchases of shares of this company would be allowed through stock
exchanges in India on behalf of Foreign institutional Investors (FIIs)/Foreign
Portfolio Investors (FPIs)/ Non-Resident Indians (NRIs)/ Persons of Indian
Origin (PIOs)," it added.
The
RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a
day-to-day basis. The Total Investment & Insurance
Solutions
The
HDFC stock surged initially on Friday after the RBI removed the ban on buying
by FIIs, but fell later in the day to close at Rs 1,377.15 a share, up 49.80
points, or 3.75 per cent, over its previous close on the BSE.The Total Investment & Insurance Solutions
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