The Reserve Bank on Thursday 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, it added.
RBI did not provide the trigger limit up to which FIIs can purchase equity shares in MCX.
Foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).
Under the scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.