Maruti Suzuki falls as RBI bans foreign purchases

Shares of the Maruti Suzuki slipped on Monday after the Reserve Bank of India said that there will no further purchases of share of this company would be allowed through stock exchanges in India on behalf of Foreign Institutional Investors.

The Reserve Bank of India on Monday today notified that M/s Maruti Suzuki India Ltd. has crossed the overall limit of 24 per cent of its paid-up capital.

The ceiling for overall investment for FIIs is 24 per cent of the paid up capital of the Indian company and 10 per centfor NRIs/PIOs. However, FII investment can be raised up to sectoral cap/statutory ceiling, subject to the approval of the board and the general body of the company passing a special resolution to that effect.

Shares opened at Rs 1,440 and slipped to low of Rs 1,415 on NSE. ON BSE shares were seen trading at Rs 1409 lower by 2.30% at 10.00 am IST.

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