RBI restricts FIIs from purchasing shares of Axis Bank
Mumbai: The Reserve Bank Wednesday restricted foreign institutional investors (FIIs) from purchasing shares in Axis Bank as the overall foreign share holding has crossed the limit of 49 percent.
"...Foreign shareholding by Global Depository Receipt (GDR)/Asset Development Reserve (ADR)/Foreign Direct Investment (FDI)/Non Resident Indian (NRI)/Persons of Indian Origin (PIO)/Foreign Institutional Investors (FIIs) in Axis Bank has crossed the overall limit of 49 percent of its paid-up capital," RBI said in a notification.
Therefore, no further purchases of share of this bank would be allowed through stock exchanges in India on behalf of these entities, it said.
FIIs registered with SEBI are eligible to purchase shares and convertible debentures issued by Indian companies under the Portfolio Investment Scheme (PIS).