IndusInd Bank shares rose as much as 2.4 per cent to hit intraday high
of Rs 860 in an otherwise choppy market on Monday after the Reserve Bank
of India on Friday removed IndusInd Bank shares from its foreign
institutional investors' (FIIs) caution list.
RBI's move will allow foreign investors to buy shares of IndusInd Bank.
Under the Portfolio Investment Scheme (PIS), RBI keeps a tab on foreign shareholding of Indian firms in accordance with the stipulated cap.
According to a press release issued by the Reserve Bank of India, "The aggregate shareholdings in IndusInd Bank by non-resident Indians/persons of Indian origin/foreign institutional investors/registered foreign portfolios investors through global depository receipts/American depository receipts/foreign direct investment in primary/secondary markets have gone below the prescribed threshold limit."
"Hence, the restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect," RBI said.
As of June 2015, FIIs held 38.58 per cent stake in the private sector lender.
Reacting to this development, shares of IndusInd Bank traded on a positive note. As of 9:36 a.m., shares of IndusInd Bank traded 0.4 per cent higher at Rs 843.
RBI's move will allow foreign investors to buy shares of IndusInd Bank.
Under the Portfolio Investment Scheme (PIS), RBI keeps a tab on foreign shareholding of Indian firms in accordance with the stipulated cap.
According to a press release issued by the Reserve Bank of India, "The aggregate shareholdings in IndusInd Bank by non-resident Indians/persons of Indian origin/foreign institutional investors/registered foreign portfolios investors through global depository receipts/American depository receipts/foreign direct investment in primary/secondary markets have gone below the prescribed threshold limit."
"Hence, the restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect," RBI said.
As of June 2015, FIIs held 38.58 per cent stake in the private sector lender.
Reacting to this development, shares of IndusInd Bank traded on a positive note. As of 9:36 a.m., shares of IndusInd Bank traded 0.4 per cent higher at Rs 843.
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