Kotak Mahindra Bank and one of its wholly-owned subsidiary has together offloaded 20 percent stake in ECA Trading Services Limited (ECA), formerly known as Ace Derivatives & Commodity Exchange Limited.
The cash consideration for the transaction, which was completed on March 18, stood at Rs 1.67 crore for Kotak Mahindra Bank and Rs 2.27 crore for Kotak Mahindra Prime.
In a regulatory filing Kotak Mahindra Bank said it has divested 8.50 percent equity stake in ECA Trading Services, while its subsidiary Kotak Mahindra Prime has offloaded 11.50 percent.
The divestment was done "to comply with the RBI Regulations on investment in a non-financial services entity since ECA has ceased to be a commodity exchange," the filing added.
Post this transaction, "the Bank and the Group will hold 20 percent equity stake in ECA," the filing said.
The networth of ECA as of March 31, 2019 stood at Rs 16.30 crore.
Shares of Kotak Mahindra Bank were trading at Rs 1,184.80 a piece on BSE, up 1.01 percent from the previous close.
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