The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of Axis Bank for increase in foreign investment from 49 percent to 62 percent.
This is subject to the aggregate foreign institutional investors holding not exceeding 49 percent of the paid up equity share capital of the bank," an official statement said.
The approval would result in foreign investment of about Rs 7,250 crore in the country, it said.
Following the inflow and hike in stake by foreign investors, the bank will become foreign-owned, whereby every future investment in seven subsidiaries will be governed by the FDI (foreign direct investment) policy
About FDI
As per the FDI (foreign direct investment) policy, downstream investment by an Indian company, which is not owned and/or controlled by a resident entities into another Indian company would be in accordance or compliance with the relevant sectral conditions on entry route.
This is subject to the aggregate foreign institutional investors holding not exceeding 49 percent of the paid up equity share capital of the bank," an official statement said.
The approval would result in foreign investment of about Rs 7,250 crore in the country, it said.
Following the inflow and hike in stake by foreign investors, the bank will become foreign-owned, whereby every future investment in seven subsidiaries will be governed by the FDI (foreign direct investment) policy
About FDI
As per the FDI (foreign direct investment) policy, downstream investment by an Indian company, which is not owned and/or controlled by a resident entities into another Indian company would be in accordance or compliance with the relevant sectral conditions on entry route.
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