Shares of YES Bank rose 4 per cent today after the Reserve Bank of India said FIIs can buy equity shares in the private lender as the shareholding by foreign investors has gone below the prescribed limit.
Following this, the shares of YES Bank went up 3.8 per cent to Rs 702 on the BSE. On the NSE, the shares rose by 3.97 per cent to Rs 702.30.
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 the restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect,” an RBI notification had said yesterday.
“Equity shares of YES Bank can now be purchased through primary market and stock exchanges,” it had said.
As per the data available on the BSE, FIIs held 46.30 per cent in YES Bank as of quarter ended September 2014.
RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
For effective monitoring of foreign investment ceiling limit, the Reserve Bank has fixed cut-off points that are two percentage points lower than the actual ceilings.