NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News  » Business » HDFC Bank scrip tanks 4% as RBI restricts FII purchases

HDFC Bank scrip tanks 4% as RBI restricts FII purchases

December 17, 2013 17:42 IST

HDFCHDFC Bank's scrip declined by nearly 4 per cent on Tuesday after the Reserve Bank restricted foreign institutional investors from buying additional stock in the country's second-largest private lender, as their shareholding has exceeded the limit.

HDFC Bank's shares fell by 3.46 per cent to close the day at Rs 659 on the BSE. In intra-day session, the scrip lost 4 per cent to Rs 655.10.

At the NSE, the blue-chip stock went down by 3.67 per cent to Rs 659.25.

The stock was the top loser among the blue-chips on both Sensex and Nifty.

"Banking major HDFC Bank dipped 3.6 per cent as RBI has curbed share purchase by FIIs as their shareholding reached the maximum prescribed limit," said Milan Bavishi, Head Research,

Inventure Growth and Securities.

Stakes held by overseas investors, including Foreign Institutional Investors, non-resident Indians, persons of Indian origin, foreign direct investment and global depository receipts in HDFC Bank have crossed the ceiling of 49 per cent of its paid-up capital, the RBI said on Monday.

No further purchases of the bank's shares will be allowed through the stock exchanges on behalf of overseas investors, it had said.

At the end of September quarter, FIIs held 33.61 per cent stake in HDFC Bank.

FIIs, NRIs and PIOs are allowed to invest in the primary and secondary capital markets through the portfolio investment scheme, under which they can acquire shares and debentures of Indian companies through the stock exchanges.

RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.

© Copyright 2018 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.