The Reserve Bank of India (RBI) today restricted foreign institutional investors (FIIs) to purchase shares in Great Eastern Shipping Company and Kajaria Ceramics as the foreign equity shareholding have reached the trigger limit of 24 per cent.
“The Great Eastern Shipping Co. Ltd. has crossed the limit of 24 per cent of its paid-up capital. Therefore, no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of Foreign Institutional Investors,” RBI said in a release.
Also, it said Kajaria Ceramics has crossed limit of 24 per cent of its paid-up capital for investment by FIIs.
“Therefore, no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of FIIs,” it added.
Foreign Institutional Investors (FIIs), Non—Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).
Under the scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.