RBI allows FIIs to buy shares in IDFC

The Reserve Bank of India (RBI) has lifted the restrictions placed on foreign institutional investors (FIIs) on purchasing shares of Infrastructure Development Finance Company (IDFC) as the foreign shareholding in the company has gone below the prescribed limit.

FIIs are allowed to hold up to 54 per cent in the company. As of quarter ended June 30, they held 52.19 per cent holding in the company.

"...foreign share holdings in IDFC Ltd by Foreign Institutional Investors (FIIs)/Non-Resident Indians (NRIs)/ Persons of Indian Origin (PIOs)/Foreign Direct Investment (FDI)/American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) under the Portfolio Investment Scheme (PIS) have gone below the prescribed threshold limit stipulated under the extant FDI Policy," the central bank said in a notification.

"Hence, the restrictions placed on the purchase of shares of IDFC Ltd are withdrawn with immediate effect," it added.

Shares of IDFC closed 3.42 per cent higher at Rs 92.25 on the Bombay Stock Exchange on Wednesday.