RBI allows FIIs to purchase shares in Pantaloon Retail  

                                                                

     The Reserve Bank of India (RBI) on Wednesday allowed foreign institutional investors (FIIs) to buy shares in Pantaloon Retail Ltd as foreign shareholding in the Future Group firm has dropped below the prescribed limit.

Removing Pantaloon from its ban list, the apex bank said that the foreign shareholding by FIIs in Future Retail (Pantaloon Retail Ltd) has gone below the prescribed threshold limit under the FDI policy. "Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," the RBI said in a notification.

  Earlier in January this year, the RBI had placed restriction on FIIs to purchase shares in Pantaloon Retail as the foreign shareholding had crossed the overall permissible limit of 24 per cent of paid-up capital.

FIIs, NRIs and PIOs (persons of Indian origin) are allowed to invest in the primary and secondary capital markets in India through portfolio investment scheme (PIS).

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

To effectively monitor the limit, the RBI has fixed cut-off points two percentage points lower than the actual ceilings.

Shares in Pantaloon Retail, on Wednesday, ended at Rs. 85.75 apiece on the BSE, up 0.18 per cent from the previous close.

                                             

Ajay singh thakur

pgdm 1st yr.