Axis Bank has rallied over 5% to Rs 1,005 after the Reserve Bank of India (RBI) lifted the ban on foreign investors buying into the private sector lender following a fall in shareholding by them in the bank below the prescribed limit of 49%.
“RBI on September 04, 2013 notifying that the foreign shareholdings through foreign institutional investors (Flls)/ non resident Indians (NRIs)/persons of Indian origin (PlOs)/foreign direct investment (FDI)/American depository receipts (ADRs)/global depository receipts (GDRs) in Axis Bank Ltd. have gone below the threshold limit stipulated under the extant FDI Policy. Hence, the restrictions placed on the purchase of shares of the Bank are withdrawn with immediate effect,” Axis Bank said in a regulatory filing.
The stock opened at Rs 979 and touched a high of Rs 1,015 in early morning deals on BSE. A combined 390,000 shares have changed hands on the counter on BSE and NSE.
“RBI on September 04, 2013 notifying that the foreign shareholdings through foreign institutional investors (Flls)/ non resident Indians (NRIs)/persons of Indian origin (PlOs)/foreign direct investment (FDI)/American depository receipts (ADRs)/global depository receipts (GDRs) in Axis Bank Ltd. have gone below the threshold limit stipulated under the extant FDI Policy. Hence, the restrictions placed on the purchase of shares of the Bank are withdrawn with immediate effect,” Axis Bank said in a regulatory filing.
The stock opened at Rs 979 and touched a high of Rs 1,015 in early morning deals on BSE. A combined 390,000 shares have changed hands on the counter on BSE and NSE.