Wednesday 4 September 2013

RBI permits Kotak Mahindra Bank to raise FII limit to 37%

Reserve Bank of India (RBI) has allowed Kotak Mahindra Bank to raise the purchasing limit of foreign institutional investors (FIIs) in the company by up to 37% of the paid up capital. As of June quarter 2013, FIIs had holding of 31.21% in the company, as per data available on the BSE.

India’s Apex Bank’s approval to the bank for raising the FII investment limit, is subject to the condition that aggregate foreign investment in the bank will not exceed the composite sectoral cap of 74% (49% under automatic route and up to 74% under government route).

However, RBI has curbed the purchase limit of equity shares by a single FII/SEBI, approved sub-account of a registered FII in Kotak Mahindra Bank, to 10% of the paid-up equity capital of the bank.

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