IDFC cuts foreign stake limit to 50 per cent

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Mumbai: New banking licensee IDFC Ltd has agreed to further cut foreign shareholding limit by 0.5 percentage points to 50 per cent, the Reserve Bank of India (RBI) said on Monday.

The apex bank said in a notification that IDFC has agreed to decrease the limit for foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) for purchase of its equity shares and convertible debentures to 50 per cent.

Earlier limit for such investments in IDFC was 50.50 per cent.

"Further, Reserve Bank advised that IDFC Limited will remain included in the bank list for FIIs/RFPIs," it said in a release.

IDFC has been gradually paring the foreign shareholding limit to meet the pre-requisite of bringing it down to 49 per cent to run banking services. It will launch banking services from October next year.

Shares in IDFC, on Monday, ended at Rs. 147.10 apiece on the BSE, up 1.83 per cent from the previous close.

PTI

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