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FIIs restricted from buying shares in Capital First

Foreign investors cannot buy further shares in non-banking finance company Capital First as foreign institutional investors/foreign portfolio investors (FIIs/FPIs) have crossed the maximum permissible investment limit, the Reserve Bank of India (RBI) has said.
Foreign shareholding through FIIs/FPIs in Capital First has crossed the limit of 24 per cent of its paid-up capital, the RBI said in a notification.
“Therefore, no further purchase of shares of this company would be allowed through stock exchanges in India on behalf of FIIs/FPIs,” the RBI said.
As on June 30, 2017, foreign portfolio investors held a total of 25.69 per cent in the company, according to data on the BSE.
FIIs, NRIs (non-resident Indians) and PIOs (persons of Indian origins) can invest in primary and secondary capital markets in India through portfolio investment scheme (PIS).
The RBI monitors ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. 
It has fixed the cut-off points two percentage points lower than the actual ceiling.
Stock of Capital First closed 0.67 per cent up at Rs 766.10 on the BSE on Wednesday.
The Business Standard, New Delhi, 27th July 2017


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