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BW Businessworld

Maruti Suzuki Falls As RBI Limits FII Purchases

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Shares of Maruti Suzuki fell 1.6 per cent after the Reserve Bank of India on Monday (4 March) restricted purchases of shares in the company by foreign investors.
 
Shareholding in Maruti by foreign institutional investors (FIIs) under the portfolio investment scheme has reached the trigger limit of 22 per cent, and any additional purchases would need prior approval from RBI, the central bank said.
 
The Reserve Bank of India regularly prevents FIIs from buying shares in companies if they are approaching the limit stipulated by regulations and will then re-adjust once foreign ownership falls below the prescribed level.
 
The Reserve Bank on 3 March notified that the foreign share holding in Maruti Suzuki India Ltd by Foreign Institutional Investors (FIIs) under Portfolio Investment Scheme (PIS) has reached the trigger limit of 22 per cent.
 
"Hence, further purchases of equity shares of this company would be allowed only after obtaining prior approval of the Reserve Bank of India," said a notification by the central bank.
 
Maruti Suzuki's share closed at Rs 1,581.75 at BSE, down 0.29 per cent over Friday.
 
With Maruti, the number of companies where 22 per cent FII limit has been reached and further purchases will be allowed with prior approval of RBI has increased to 10.
 
The other companies, including, Multi Commodity Exchange of India (w.e.f September 26, 2013), Titan Industries (w.e.f. November 6, 2013) and Tata Chemicals (w.e.f. December 13, 2013).
 
In a separate notification, RBI informed that name of 'Chinatrust Commercial Bank' has been changed to 'CTBC Bank Co. Ltd'.
 
 
(Agencies)


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