RBI allows up to 60% foreign holding in YES Bank

Reserve Bank on Friday allowed foreign investors to buy up to 60 per cent in mid-sized private sector lender YES Bank .

RBI said the private lender has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.

Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest from existing 49 per cent up to 60 per cent of the paid up capital of YES Bank Limited under the Portfolio Investment Scheme (PIS), RBI said in a notification.The total foreign investment... from all sources in the company shall not exceed 60 per cent, it said.Therefore, further purchases of equity shares of this company would be allowed only after obtaining prior approval of RBI, it added. FIIs, RFPIs, NRIs and Persons of Indian Origins (PIOs) can invest in primary and secondary capital markets in India through PIS. RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.