The Reserve Bank of India (RBI) said on Friday that foreign institutional investors (FIIs) and non-resident Indians (NRIs) would not be allowed to purchase shares in Axis Bank as the limit for their investment has reached the trigger limit.
"...the foreign shareholding through Foreign Institutional Investors (FIIs)/Non-Resident Indians (NRIs)/Persons of Indian Origin (PIOs)/Foreign Direct Investment (FDI)/American Depository Receipt (ADR)/Global Depository Receipts (GDRs) in Axis Bank has reached the trigger limit," the RBI said in a notification.
Accordingly, further purchases Axis Bank equity shares by them would be allowed only after obtaining the prior approval from the RBI, the apex bank added.
As per data on the BSE, FIIs had a 43.37 per cent holding in Axis Bank as on September 30, 2013.
FIIs, NRIs and PIOs are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).
Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges.
The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.
For effective monitoring of foreign investment ceiling limits, the RBI has fixed cut-off points that are two percentage points lower than the actual ceilings.
Shares in Axis Bank, on Friday, ended at Rs 1,084.15 apiece on the BSE, down 0.13 per cent from the previous close.
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