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Private sector lender Kotak Mahindra Bank is withdrawing its Writ Petition against the Reserve Bank of India on promoter shareholding norms.
In a regulatory filing on Thursday, the bank said the RBI has conveyed it's in principle approval to capping promoters' voting rights in the bank to 20 per cent of paid up voting equity share capital (PUVESC) till March 2020.
Promoters’ voting rights in the Bank will be capped to 15 per cent of PUVESC from April 1, 2020 onwards, it further said.
Promoters’ shareholding in the Bank will be reduced to 26 per cent of PUVESC of the Bank within six months from the date of final approval of the RBI and after that the promoters will not purchase any further paid up voting equity shares’ of the Bank till the percentage of promoters’ shareholding reaches 15 per cent of PUVESC of the Bank or such higher percentage as may be permitted by RBI from time to time, the bank further said.
"The promoters will be entitled to purchase paid-up voting equity shares of the Bank up to 15 of the PUVESC of the Bank or such higher percentage as may be permitted in the future, and exercise voting rights on such shares," it further said.
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