Foreign Investors Restricted From Buying GSFC Shares

Mumbai: The Reserve Bank (RBI) has said that shareholding in Gujarat State Fertilizers & Chemicals Ltd (GSFC) by foreign institutional investors (FIIs) has reached its trigger limit and any further purchases of the shares by them will require approval of the apex bank.

As of quarter ended September 2014, FIIs held 19.10 per cent shares in the company, data from the BSE showed.

"...the foreign shareholding through Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) in Gujarat State Fertilizers & Chemicals Ltd has reached the trigger limit," the RBI said in a release.

"Therefore, further purchases of equity shares of this company would be allowed only after obtaining prior approval of the RBI," it said.

Similarly, foreign investors will need approval for purchasing shares in Deccan Gold Mines Ltd, the RBI said in a separate release.

"...the foreign shareholding through Non-Resident Indians (NRI)/Persons of Indian Origins (PIOs) in M/s Deccan Gold Mines Ltd. has reached the trigger limit."

Therefore, further purchases of equity shares of this company would be allowed only after obtaining prior approval of RBI, it said.

FIIs held 3.05 per cent shares in the gold miner as of September 30, 2014.

FIIs, RFPIs, NRIs and persons of Indian origins (PIOs) 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, the RBI has fixed cut-off points two percentage points lower than the actual ceiling.