12 companies have reached the FDI limit: Depositaries approach BSE

NSDL AND CDSL have submitted notices against 12 companies that have raised a red flag and have crossed the FDI limit.

Published: 17th June 2018 04:52 PM  |   Last Updated: 17th June 2018 04:52 PM   |  A+A-

Image for representational purpose only.


NEW DELHI: 12 companies have reached the FDI limit and have raised a red flag according to information by NSDL and CDSL who have issued a notice.

As per the separate notices issued by NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited), a red flag has been activated in HDFC Bank, Wonderla Holidays, IndusInd Bank, Ashapura Minechem, Cyient Ltd, SH Kelkar and Company, Abbott India, Delta Corp, Shanti Educational Initiatives, Sai Baba Investment and Commercial Enterprises, Trent Ltd and JVL Agro Industries.

Based on information received from the depositories regarding red flag activation and limit breach, institutional trading series (6 lakh series) for the 12 companies will be available for trading from June 18, the BSE said in a notice dated June 16.

In Institutional trading series (6 lakh series), which is going to be discontinued by the BSE from July 1 in equity segment, only foreign institutional investors are permitted to trade among themselves.

In a circular, the NSE noted that in relation to SEBI framework regarding monitoring of foreign investment limits in listed Indian companies, the information relating to red flag and breaches have been furnished by the depositories for dissemination.

The Securities and Exchange Board of India (SEBI), in April, had put in place a framework for the depositories to monitor the foreign investment limits in listed Indian companies.

Under the framework, the depositories have to provide information to the exchanges regarding activation of a red flag in a company whenever the foreign investment is within 3 per cent or less than 3 per cent of the aggregate NRI/FPI limits or the sectoral cap is reached.

Also, the details of breach of foreign investment limits in a company need to be furnished to the bourses.

In the event of a breach of the sectoral cap or the aggregate FPI/NRI limit, the foreign investor has to divest its excess holding within five trading days from the date of settlement of the trades, by selling shares only to a domestic investor.

More from Business.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp