RBI on FII limit in Yes Bank and IIFL

The Reserve Bank of India (RBI) has increased the foreign holding limit to 74 per cent in Yes Bank under Portfolio Investment Scheme (PIS). The Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 74 per cent from the existing 60 per cent of the paid-up capital in the bank.

The RBI also clarified that the total foreign investment from all sources in the private sector Yes Bank shall not exceed 74 per cent. The Cabinet Committee on Economic Affairs had last month approved Yes Bank's proposal to increase foreign investment limit in the bank to 74 per cent. Earlier, Yes Bank has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for increasing the limit for the purchase of its equity shares by FIIs/RFPIs.

On other hand, RBI has asked IIFL to cut down foreign investors holding to 80 per cent from 100 per cent under PIS. The company has already passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for decreasing the limit for the purchase of its equity shares by FIIs/RFPIs.

On June 10, the share price of Yes Bank increased by 2.11 per cent on bourses and closed at Rs 1062.25. The share price of IIFL rose by 3.28 per cent on bourses and closed at Rs 229.55 on Friday.