INSUBCONTINENT EXCLUSIVE:
The Bombay High Court declined to provide any interim relief to Kotak Mahindra Bank in its challenge of the Reserve Bank of India (RBI)
order barring its promoter-managing director Uday Kotak from reducing his stake in the bank through a preference share sale.
The development
its directions.
Kotak shares fell 2.5 per cent to end at Rs 1,224 per share on Monday, even as the benchmark 30-share Sensex rose 0.85 per
With the decline in relief, Kotak is likely to be on the wrong side of the regulatory deadline after December 31
They will wait for the direction of the court
The RBI can fine them for missing the deadline, but I think it will all hinge on the final high court order which may take a few months to
timeline set a few years ago had directed Kotak Mahindra to trim promoter shareholding in the bank to 20 per cent by December 31, 2018, and
further to 15 per cent before March 31, 2020
In early August, Kotak sold Rs 100 crore of non convertible perpetual non-cumulative preference share (PNCPS) to a bunch of domestic
The sale ensured that the bank did not raise unwanted equity capital and at the same time complied with RBI directions on promoter
