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IDFC surges 7 percent as RBI removes FII restrictions

Reuters Market Eye - Shares in IDFC(NSI:IDFC.NS - News) surge as much as 7 percent after the Reserve Bank of India on Wednesday lifted restrictions placed on foreign investors purchasing shares of the company as their shareholding in IDFC fell below the prescribed limit.

The company had reduced the limit that foreign investors can own in the infrastructure lender to 54 percent from 74 percent without giving a reason in August.

Dealers say the FII investment limit was reduced earlier to comply with RBI's bank licence guidelines as the company has applied for a banking licence

The stock was trading up 4.7 percent at 96.60 rupees at 9:48 a.m. while the broader market was down 0.50 percent

(Reporting by Abhishek Vishnoi)