The Reserve Bank of India (RBI) has stated that non-resident Indians would be allowed to purchase shares of Shyam Telecom after its approval.

The central bank has attributed this to the fact that limit to non-resident Indian (NRI) investment in the company has been reached and therefore prior approval must be sought from RBI.

As per the company's filing on the Bombay Stock Exchange, promoters hold a 66.22 per cent stake in the company and the remaining is held by other entities. However, foreign institutional investment in the company is nil.

RBI currently assess the limit on foreign institutional investor (FII)/NRI/person of Indian origin (PIO) investments in listed Indian companies on a daily basis and has fixed the cut-off point two percentage points lower than the actual ceiling.