Mumbai: The Reserve Bank today said the foreign institutional investors (FIIs) investment in Multi Commodity Exchange has reached the trigger limit under portfolio investment scheme and purchase of further equity shares of company will require its approval.
“...the aggregate net purchases of equity shares in Multi Commodity Exchange of India Limited by Foreign Institutional Investors (FIIs) in the primary/secondary markets under Portfolio Investment Scheme (PIS) have reached the trigger limit,” RBI said in a notification.
Hence, further purchases of equity shares of this company would be allowed only after obtaining prior approval of the Reserve Bank of India.
RBI did not provide the trigger limit up to which FIIs can purchase equity shares in MCX.
As of quarter ended June 2013, FIIs had 38.40 per cent equity shareholding in MCX, as per data available on the BSE website.
RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. For effective monitoring of foreign investment ceiling limits, it has fixed cut—off points that are two percentage points lower than the actual ceilings.
