The Reserve Bank of India (RBI) has today notified that foreign institutional investors (FIIs) and registered foreign portfolios investors (RFPIs) of Shriram Transport Finance can now invest up to 74% of the paid up capital.

The RBI said, "The foreign shareholding by FIIs/RFPIs in Shriram Transport Finance have gone below the revised threshold limit. Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect."

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," it added.

Earlier, FIIs and RFPIs held 54.18% of the paid-up capital i.e 122.92 million shares. According to the new investment limit, FIIs and RFPIs can now hold a maximum of 167.89 million shares representing 74% of the paid-up capital.

Shares of the company gained Rs 12.2, or 1.31%, to trade at Rs 944.50. The total volume of shares traded was 37,016 at the BSE (1.09 p.m., Friday).