RBI monitoring FII investments in Union Bank
22 Jul 2009
The Reserve Bank India has barred any further investments in Union Bank of India on behalf of foreign institutional investors (FIIs) without obtaining the central bank's permission as FII investment in the public sector bank has reached 18 per cent against its permissible limit of 20 per cent.
"The foreign institutional investor (FII) shareholding of Union Bank of India has reached 18 per cent of its paid-up capital, ie, less 2 per cent short of the sectoral cap of 20 per cent for the public sector banks (PSBs)," RBI said.
"Any further purchases of equity shares on behalf of Foreign Institutional Investors (FIIs)/non resident Indians (NRIs)/persons of Indian origin (PIOs) who have permission under Portfolio Investment Scheme (PIS) will now be allowed after obtaining prior approval of the Reserve Bank of India," it added.
RBI has requested stock exchanges to inform immediately the total number of equity shares of this bank proposed to be purchased on behalf of FIIs/NRIs/PIOs in India.
Any further investment up to the 20 per cent ceiling will be allowed on receipt of such proposals, RBI said, adding, clearance will be given on a first-come-first-served basis, after taking into account the purchases proposed to be made by all designated bank branches.
