Foreign investors won't be allowed to buy additional shares in Axis Bank, India's third-largest private-sector bank, as their shareholding has crossed the prescribed limit.
The shareholding of foreign institutional investors in Axis Bank has crossed the limit of 49 per cent of its paid-up capital, the Reserve Bank of India said today.
"Therefore no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of FIIs," the RBI said.
The RBI monitors the ceilings on investments by FIIs, non-resident Indians and persons of Indian origin on a daily basis.
The central bank has set a cut-off level that is two percentage points lower than the actual ceiling. After the net equity investment in a company reaches the cut-off level, additional share purchases require the RBI's approval.
Shares of Axis Bank rose 0.57 per cent to Rs 1,468.80 at the close on the BSE.
