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RBI allows FIIs to buy equity in Yes Bank

PTI 21 Nov 2014, 7:55:18 AM IST

Mumbai: The Reserve Bank on Thursday said FIIs can buy equity shares in private lender Yes Bank as shareholding by foreign investors has gone below the prescribed limit.

The RBI has removed Yes Bank from its caution list of monitoring foreign investment following the dip in shareholding by foreign investors below the prescribed limit.

" ... the restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect," an RBI notification said.

"Equity shares of Yes Bank can now be purchased through primary market and stock exchanges," it added.

As per the data available on the BSE, FIIs held 46.30 percent in Yes Bank as of quarter ended September 2014.

RBI monitors ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. The RBI has fixed cut-off points two percentage points lower than the actual ceiling.

Shares of the bank on Thursday closed at Rs 676.25 per share on the BSE, down 0.72 percent from the previous close.