FII investments in V-Mart cross the set limit

Foreign investors can no more be able to buy shares in home grown fashion retailer V-Mart Retail,

as the foreign shareholding in the company has crossed the permitted limit. The Reserve Bank of India (RBI) has said that the foreign shareholding in the company through Foreign Institutional Investors (FIIs) has crossed the overall limit of 24 percent of its paid-up capital.

“Therefore, no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of Foreign Institutional Investors,” RBI said in a notification. FIIs, NRIs and PIOs (Persons of Indian Origins) are allowed to invest in primary and secondary capital markets in India through Portfolio Investment Scheme (PIS). And the RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.

As per the data available on BSE, FIIs shareholding in V-Mart Retail as of now stands at 15.13 percent till the quarter ended December 31, 2013. Announcing its results for the third quarter, the company reported a growth in profit after tax (PAT) of 37 percent on year-on-year basis. In the quarter, the company's sales grew by 63 percent and EBITDA grew by 41 percent.