Kotak Mahindra Bank’s foreign institutional investor limit was increased by 3 per cent to 40 per cent by the Reserve Bank of India on Friday. The total foreign investor limit is restricted at 74 per cent as prescribed by the Government.

“Kotak Mahindra Bank passed a resolution at its Board of Directors' meeting and a resolution in its Annual General Meeting agreeing for the purchase of its equity shares by foreign institutional investors (FIIs)/Foreign Portfolio Investors (FPIs)/Qualified Foreign Investors (QFIs) up to 40 per cent (revised from earlier limit of 37 per cent) of their paid-up capital through primary/secondary markets in India,” central bank said in a notification.

The Reserve Bank's approval to the Kotak Mahindra Bank for raising FII investment limit to 40 per cent is subject to the condition that aggregate foreign investment in the bank should also not exceed the composite sectoral cap of 74 per cent (49 per cent under Automatic Route (including indirect foreign investment) and beyond 49 per cent to 74 per cent under Government Route) as prescribed by the Government from time to time, RBI said.

As the bank has now passed the necessary resolutions in this regard, equity shares of the Kotak Mahindra Bank can now be purchased through primary market and stock exchanges provided the purchase of equity shares by a single FII/SEBI approved sub-account of a registered FII in the Kotak Mahindra Bank shall not exceed 10 per cent of the paid-up equity capital of the bank. It may be ensured that the investments made are within the stipulated ceilings.

Related Topics
comment COMMENT NOW