RBI allows overseas investors to buy stake in MCX
The aggregate share holdings in Multi Commodity Exchange of India by Foreign Institutional Investors/Registered Foreign Portfolios Investors have gone below the prescribed threshold caution limit
New Delhi: The Reserve Bank OF India (RBI) has allowed overseas investors to buy equity shares in Multi Commodity Exchange (MCX) after foreign shareholding in the bourse fell below the prescribed threshold caution limit.
The aggregate share holdings in Multi Commodity Exchange of India by Foreign Institutional Investors/Registered Foreign Portfolios Investors have gone below the prescribed threshold caution limit stipulated under the extant FDI policy, RBI said in a notification.
"Hence the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect", it said.
RBI further notified that all the approvals received against the said scrip are duly cancelled.
"Equity shares of Multi Commodity Exchange of India can now be purchased through primary market and stock exchanges," it added.
As per data available on BSE, public holding in the company was 99.64 per cent as of March 2016, while the rest of 0.36 per cent was held by others.
MCX shares closed at Rs 857.80 apiece on BSE on Friday, up 0.30 per cent.
PowerGrid was the top gainer in the Sensex pack, rising around 2 percent, followed by Reliance Industries, ONGC, HCL Tech, Sun Pharma, Infosys and HDFC twins
BSE was trading 271.72 points or 0.52 percent higher at 52,209.16 in initial deals, and NSE Nifty rose 69.70 points or 0.45 percent to 15,652.50
BSE was trading 189.52 points or 0.37 percent lower at 51,233.36 in initial deals, and NSE Nifty fell 43.20 points or 0.28 percent to 15,392.45