The hike in Kotak Mahindra Bank’s foreign institutional investor limit by 3 per cent to 40 per cent was approved 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,” the central bank said in a notification.
The Reserve Bank’s approval 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.
Source : http://www.thehindubusinessline.com/
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