Due to increase the foreign direct investment from 49% to 62% of Axis Bank's paid up equity share capital, RBI has allowed to FIIs to invest in Axis Bank's share without any restriction. Now, all the FIIs and NRIs are free to buy under new FDI policy. This rule will apply immediately after RBI's decision.
Following are the main reason behind this.
1. # Government wants more direct investment in India. By withdrawing this restriction, there is the chance of inflow of Rs. 7250 crores in India through foreign direct investment in Axis bank.
2. # This decision came because of flexible FDI policy. Same decison will apply on all the subsidiaries of Axis bank. There are seven subsidiaries of Axis bank. Now any NRI can invest in any subsidiary of Axis Bank without any restriction.
3.# Aug. 2013, RBI had banned to buy Axis bank after 49% of total paid up capital. At that time 64 Rs. per dollar rate. I think, Govt. thinks, due to more inflow of foreign investment, Indian currency's value will strong. Now Indian Rupee's rate is Rs. 61.92 per dollar.
Following are the main reason behind this.
1. # Government wants more direct investment in India. By withdrawing this restriction, there is the chance of inflow of Rs. 7250 crores in India through foreign direct investment in Axis bank.
2. # This decision came because of flexible FDI policy. Same decison will apply on all the subsidiaries of Axis bank. There are seven subsidiaries of Axis bank. Now any NRI can invest in any subsidiary of Axis Bank without any restriction.
3.# Aug. 2013, RBI had banned to buy Axis bank after 49% of total paid up capital. At that time 64 Rs. per dollar rate. I think, Govt. thinks, due to more inflow of foreign investment, Indian currency's value will strong. Now Indian Rupee's rate is Rs. 61.92 per dollar.
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