The Reserve Bank of India on Wednesday said it will no more allow foreign investors to purchase shares of IndusInd Bank as their investment in the private lender has reached the trigger limit.
"The RBI has today notified that the aggregate net purchases of equity shares in IndusInd Bank by FIIs/NRIs/PIOs under Portfolio Investment Scheme (PIS) in the primary/secondary markets have reached the trigger limit.
"Hence, the company has been included in the ban list of RBI (for purchase of equity shares by FIIs/NRIs/PIOs)," the central bank said in statement.
It said that accordingly, no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of FIIs/NRIs/PIOs.
The apex bank, which monitors foreign fund holding in firms, issues an alert when the holding reaches a trigger limit, which is slightly below the holding limit in the company. Purchases by foreign funds, after the trigger limit, need RBI's approval.
The maximum limit that foreign investors can hold in Indian banks is 20 per cent.
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