HC admits petition against RBI circular on FIIs

Kochi, Oct 29 (UNI) Kerala High Court today admitted a petition challenging a Rerserve Bank of India (RBI) circular lifting ban on Foreign Institutional Investors (FIIs) from short selling, lending and borrowing equity shares of Indian companies.

Admitting the petitions, Mr Justice V Giri ordered notice to the Union Government, RBI, SEBI, National Stock Exchange of India Limited and Bombay Stock Exchange Limited, on the matter.

The petitioner, Director of Thrissur based True -Way Financial Services Limited K G Achuthan submitted that the RBI circular issued on December 31, 2007 was against the directions of the SEBI and policies framed by the Centre for equity share business.

The petitioner also contended that the Indian stock market was badly affected due to the permission granted to FIIs.

UNI XR MA DS AKJ BD1910