FPI holding: Federal Bank under RBI watch
Reserve Bank will monitor foreign shareholding in Federal Bank so that it does not cross the upper limit of 74 per cent, reported PTI. The board of the company has passed a resolution to hike the limit of foreign investment to up to 74 per cent, RBI said. Earlier, foreign investment in Federal Bank was 49 per cent.
“The increase is subject to regulation 5(2) and 5 (2A) of Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000…As amended from time to time, and the onus of compliance with the limits prescribed for the company is on the company,” RBI said.
FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS. RBI monitors ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. It has fixed the cut-off points two percentage points lower than the actual ceiling.