The Reserve Bank of India (RBI) said foreign Institutional Investors (FIIs) cannot buy shares of car manufacturer Maruti Suzuki India Ltd (MSIL) as their limit of 24% has been breached.
Maruti Suzuki India Ltd has crossed the overall limit of 24% of its paid-up capital. Therefore, no further purchases of share of this company would be allowed through stock exchanges in India on behalf of foreign institutional investors, the RBI said in a circular on Monday.
FIIs, NRIs and PIOs (persons of Indian origin) are allowed to invest in the primary and secondary capital markets in India under the portfolio investment scheme (PIS).
Shares of Maruti Suzuki closed at Rs. 1,449 on the Bombay Stock Exchange, up 0.7% from the previous close.