HDFC Bank & IndusInd Bank have been put in the ‘red flag’ list, a system used for monitoring foreign portfolio investor (FPI) limits. A listed company enters the list when the available legroom for overseas investment is less than 3% of the permissible limit. FPIs can invest up to 74% in both HDFC Bank and IndusInd Bank.
The current FPI shareholding in case of HDFC Bank is 71.3 per cent, while that of IndusInd Bank is 73. 1 per cent. Besides these two, Novartis India and Procter & Gamble Hygiene and Health Care are the only other companies in the red-flag list.