Friday, 17 February 2017

Foreign stake in HDFC Bank crosses 74% limit again: RBI-The Total Investment & Insurance Solutions

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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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