Shriram Finance Ltd.

Reserve Bank of India (RBI) has notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 74 per cent of the paid up capital of Shriram Transport Finance Co under the Portfolio Investment Scheme (PIS). 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.

RBI has further notified that the foreign shareholding by FIIs/RFPIs in Shriram Transport Finance have gone below the revised threshold limit. Accordingly, the restrictions placed on the purchase of shares of the company are withdrawn with immediate effect.

Shriram Transport Finance is a flagship company of the Chennai-based Shriram group and is classified as deposit taking Asset Financing NBFC. The company was with an objective to provide hire purchase and lease finance for the medium and heavy commercial vehicles to individual truck operators.