Mumbai: The Reserve Bank on Thursday lifted the restriction on purchase of shares in Shriram City Union Finance by allowing FIIs to hold up to 74 percent of the paid up capital.
"The Reserve Bank of India today notified that Shriram City Union Finance has passed resolutions...To enhance the limit for purchase of its equity shares and convertible debentures by Foreign Institutional Investors (FIIs) through primary market and stock exchanges up to 74 percent of its paid up capital, under the PIS," RBI said in a notification.
RBI has also advised that the foreign share holding by FIIs in this company have gone below the revised threshold limit stipulated under the extant FDI Policy.
"Hence, the restrictions placed on the purchase of shares of this company have been withdrawn with immediate effect," the notification said.
Shriram City is a deposit accepting non-banking finance company that offers services such as financing two wheelers, three wheelers, four wheelers, personal loans, small business loan and loan against goal.
First Published: Thursday, July 18, 2013, 23:42