FII limit in Power Grid hits trigger level

The FII investor limit in state- owned Power Grid Corporation has reached the trigger level and foreign investors can purchase further shares only upon getting the Reserve Bank's approval.

The foreign shareholding through Foreign Institutional Investors/Registered Foreign Portfolios Investors in Power Grid Corporation of India Ltd has reached the trigger limit, the Reserve Bank of India said on Friday.

Therefore, further purchases of equity shares of this bank would be allowed only after obtaining prior approval of the Reserve Bank of India, it said in a notification.

Earlier this year, the RBI had allowed FIIs to purchase up to 30 per cent of the paid up capital of Power Grid Corporation under the Portfolio Investment Scheme (PIS).

As per data on the BSE, FIIs held 27.41 per cent shares in Power Grid as of quarter ended September 2014. The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.

The RBI has fixed cut-off points two percentage points lower than the actual ceiling. Shares of the company on Friday closed 0.27 per cent up at Rs 146.40 per scrip on the BSE.