The Reserve Bank of India (RBI) today said FIIs and NRIs would not be allowed to purchase shares in Axis Bank as the limit for their investment has reached the trigger limit.
"...the foreign share holding 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," RBI said in a notification.
Accordingly, further purchases of equity shares of Axis Bank by them would be allowed only after obtaining the Reserve Bank's prior approval, it added.
As per data on the BSE, FIIs had a holding of 43.37 per cent 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.
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 Reserve Bank has fixed cut-off points that are two percentage points lower than the actual ceilings.
Shares of Axis Bank today closed at Rs 1,084.15 apiece on the BSE, down 0.13 per cent from the previous close.