The Reserve Bank of India (RBI) said Friday the foreign shareholding of foreign institutional investors (FIIs) in Ipca Laboratories has gone below the revised threshold caution limit. Hence the restrictions placed on the purchase of shares of Ipca Laboratories are withdrawn with immediate effect, it said.

The RBI further notified that FIIs/ RFPIs can now invest up to 35% of the paid up capital of Ipca Laboratories under the Portfolio Investment Scheme (PIS).

The RBI has stated that the company has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/ RFPIs.

The purchases could be made through primary market and stock exchanges and would be subject to Regulation 5(2) of FEMA Notification No.20/2000-RB dated May 03, 2000 (as amended from time to time) and other terms and conditions stipulated by the Reserve Bank.

Shares of the company declined Rs 12.75, or 1.92%, to settle at Rs 652.75. The total volume of shares traded was 12,564 at the BSE (Friday).