Bharti Airtel shares surge by 13% after FII Limit Extension
Bharti Airtel shares surge by almost 13 percent after the National Securities Depository (NSDL) increased the company’s foreign ownership limits to 100 percent.
Bharti Airtel shares surge by almost 13 percent after the National Securities Depository (NSDL) increased the company’s foreign ownership limits to 100 percent. The FII limit was 49 percent earlier but after approval by NSDL, the limit has been set up to 100 percent.
The buyers are more interested in Bharti Airtel shares after the limit extension by NSDL. At 12:25 PM, the share of Bharti Airtel was trading at 454, up by 4.53 percent. Earlier the company reported a loss reduction in the results of the quarter end in September. Airtel reported a consolidated net loss of Rs 763.2 crore for the September quarter of FY21 against a loss of Rs 23,044.90 crore in Q2FY20 and Rs 15,933.1 crore in Q1FY21.
However, a USA based finance company MSCI is likely to increase weightage in the company after the limit extension thus a rise is expected in the shares of Bharti Airtel.
RBI allows Foreign Institutional Investors (FIIs) to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS). Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.
The limit for 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.