Private sector lender, Axis Bank has been permitted by regulator, Reserve Bank of India to merge with the investment banking and equity market business of Enam Securities.

The merger will however take place in accordance to conditions set forth by the apex bank.

The first condition is that any shareholder of Enam Securities who has acquired Axis shares via share swap deal cannot be a part of the board of Axis Bank.

With this condition, the bank cannot place Mr Vallabh Bhansali, co-founder and Chairman of Enam Securities, on its board. So it is now venturing other ways to work with Mr Bhansali, said Mr Somnath Sengupta, Executive Director and Chief Financial Officer, Axis Bank.

The merger would take some time to reach completion, said Mr Sengupta.