The Reserve Bank of India has put Ujjivan Financial Services on its ban list for foreign investment, which means overseas investors will not be able to buy further equity in the company.
The aggregate foreign shareholding through foreign institutional investors, registered foreign portfolio investors, foreign direct investment, non-resident Indians, American depository receipts, global depository receipts and persons of Indian origin in Ujjivan Financial Services has crossed the permissible limit, the RBI said.
On May 9, 2016, the Reserve Bank of India had allowed foreign institutional investors and registered foreign portfolios investors to invest up to 49 per cent in Ujjivan Financial Services.
Shares of Bangalore-based Ujjivan Financial Services were listed on May 10, 2016 on the bourses and since then the shares have rallied over 70 per cent in over a month’s time frame.
Shares of Ujjivan Financial Services ended 3.73 per cent lower at Rs 377.50, underperforming the Nifty which closed 0.80 per cent lower.
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