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RBI prevents FIIs from buying Dainik Bhaskar shares

MUMBAI: The Reserve Bank of India (RBI) has prevented foreign institutional investors (FIIs) from buying shares of DB Corp, the publishers of Dainik Bhaskar, as it has reached the upper ceiling.

RBI, which monitors the ceilings on FII/NRI/PIO investments in domestic companies on a daily basis, brought to the notice that the foreign shareholding in DB Corp has reached the trigger limit. The foreign shareholding is through FIIs, NRIs, Persons of Indian Origins, foreign direct investment (FDI) and Depositary Receipts.

FIIs, NRIs and PIOs are allowed to invest in the primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).

For effective monitoring of foreign investment ceiling limits, the RBI has fixed cut-off points that are two percentage points lower than the actual ceilings.

The FII holding in DB Corp stood at 17.73 per cent, as of 31 December 2013. In the quarter through September, FII holding stood at 16.46 per cent. For the first quarter, FII holding was reported at 14.66 per cent of the paid-up equity of the company.

DB Corp’s share price grew from Rs 226.35 on 28 March 2013 to Rs 308 as of today, an increase of 36 per cent. It hit a 52-week high of Rs 344.50 per share on 23 January 2014 and a 52-week low of Rs 210.05 on 26 March 2013.

Post RBI announcement, DB Corp’s share price on BSE slid 0.90 per cent before ending the day at Rs 308.

DB Corp prints and publishes newspapers in four languages across 14 states. It also operates radio business in seven states and 17 cities.