RBI allows FIIs to buy further shares in Bajaj Auto

MUMBAI: The Reserve Bank today allowed foreign institutional investors to purchase the shares of Bajaj Auto as their holding in the company has gone below the trigger limit of 24 per cent following the company's demerger of two non-banking finance companies.

"... the restriction placed on the purchase of shares of Bajaj Auto Ltd on behalf of FIIs may be treated as withdrawn," RBI said in a release.

Earlier, RBI had asked FIIs not to purchase any further shares in Bajaj Auto as their holding had touched 24 per cent.

But, after approval for demerger of Bajaj Auto Ltd with Bajaj Finserv Ltd and Bajaj Holdings and Investment Ltd with effect from June 16, the FII holding has gone below 24 per cent, RBI said.

"Hence ... it will, therefore, now be in order to purchase the shares of the company in the secondary market on behalf of FII clients who have obtained permission to invest under the Portfolio Investment Scheme (PIS) subject to the existing ceilings and guidelines in this regard," the Reserve Bank said.