No further FII investment in Persistent Systems: RBI

MUMBAI: Foreign institutional investors won't be allowed to buy further shares in IT firm Persistent Systems as the the overseas investment limit for the company has crossed the prescribed limit, the Reserve Bank said today.

The Reserve Bank of India (RBI) in a release said it is monitoring the foreign investment in the company under the portfolio investment scheme (PIS) which has crossed the limit of 24 per cent of its paid-up capital.

"Therefore, no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of FIIs/RFPIs," RBI said.

Foreign Institutional Investors (FIIs), Registered Foreign Portfolios Investors (RFPIs), NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.

The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. To effectively monitor the limit, RBI has fixed cut-off points two percentage points lower than the actual ceiling.