The Reserve Bank of India has removed restrictions imposed on foreign investors to buy shares in Bank of Baroda as the foreign shareholding under portfolio investment scheme (PIS) in the bank has gone below prescribed limit.

Aggregate share holdings by Foreign Institutional Investors/Registered Foreign Portfolios Investors/Non-Resident Indian/Persons of Indian origin (PIOs) under PIS in Bank of Baroda have gone below the prescribed threshold caution limit, RBI said.

FIIs held 16.95% shares in Bank of Baroda as of quarter ended June 2014.

"Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect. Equity shares of Bank of Baroda can now be purchased through primary market and stock exchanges," RBI added.

Shares of the bank gained Rs 25.1, or 3.02%, to trade at Rs 856.95. The total volume of shares traded was 139,337 at the BSE (12.24 p.m., Wednesday).