RBI move allows foreign investors to buy more shares in IndusInd Bank

MUMBAI: The Reserve Bank has removed IndusInd Bank from its caution list, allowing foreign investors to buy further shares in the lender.

Under the Portfolio Investment Scheme (PIS), RBI keeps a tab on foreign shareholding of Indian firms in accordance with the stipulated cap.

"The aggregate shareholdings in IndusInd Bank by non-resident Indians/persons of Indian origin/foreign institutional investors/registered foreign portfolios investors through global depository receipts/American depository receipts/foreign direct investment in primary/secondary markets have gone below the prescribed threshold limit," RBI said in a release.

"Hence, the restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect," RBI said.

The shares of IndusInd Bank can now be purchased through the primary market and stock exchanges, it added.

FIIs held 38.58 per cent in IndusInd Bank as of the quarter ended June 2015, data on BSE showed.

In a separate release, RBI said foreign investors can now invest up to 31.50 per cent under PIS in Natco Pharma.

Foreign institutional investors/registered foreign portfolios investors can now invest up to 31.50 per cent of the paid-up capital of Natco Pharma under PIS, RBI said.

"The company has passed resolutions at its board of directors' level... agreeing to enhancing the limit for the purchase of its shares and convertible debentures by FIIs/RFPIs," RBI said.

As of June 30, FIIs held 9.32 per cent in Natco Pharma.

The stock of IndusInd Bank today closed at Rs 840.05 on BSE, down 1.19 per cent and that of Natco Pharma closed 0.49 per cent lower at Rs 2,250.25.