Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusiness

Kotak Mahindra Bank gets RBI nod to cap promoters’ voting rights at 20% till March

The bank says promoters' voting rights will be capped to 15 percent from April 1 and their shareholding cut to 26 percent within six months of the final nod from RBI.

January 30, 2020 / 04:27 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Private sector lender Kotak Mahindra Bank said the Reserve Bank of India had accepted promoters' voting rights to be capped at 20 percent till March.

"The RBI on January 29, 2020, has conveyed its in-principle acceptance promoters' voting rights in the bank to be capped at 20 percent till March 31, 2020," Kotak Mahindra Bank said in a BSE filing on January 30.

The bank said promoters' voting rights in the bank will be capped to 15 percent from April 1 and promoters' shareholding will be cut to 26 percent within six months from the final RBI nod.

The RBI's licensing rules mandate a private bank's promoter to pare holding to 40 percent within three years, 20 percent in 10 years and 15 percent within 15 years.

Promoters, who hold a 29.96 percent stake in Kotak Mahindra Bank, can't buy shares till the holding is cut to 15 percent.

"The promoters will not purchase any further paid-up voting equity shares of the bank till the percentage of promoters’ shareholding reaches 15 percent of paid-up voting equity share capital of the bank or such higher percentage as may be permitted by RBI from time to time," said the bank.

Kotak Mahindra Bank is withdrawing the petition it filed in Bombay High Court against RBI’s licencing rules.

Moneycontrol News
first published: Jan 30, 2020 04:14 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347