 "Kotak Mahindra Bank slips after decision on FII limit delayed")
Shares of Kotak Mahindra Bank have slipped by 1.5% to Rs 1,272 on the Bombay Stock Exchange (BSE) after the Foreign Investment Promotion Board (FIPB) deferred the bank’s proposal for hiking the foreign investment limit in the bank from 48% to 55% for the second time. CLICK FOR FULL REPORT
The proposal was postponed as comments from the Department of Financial Services (DFS) regarding the impact of the proposal on downstream investment by the bank in the insurance venture did not come.
However, if the FIPB permits Kotak to raise the FII limit to 55%, an increase in the foreign limit to over 50% would automatically qualify the bank as 'foreign-owned', resulting in a dilemma of how to treat the bank's stake in its insurance business.
The stock opened at Rs 1,275 and touched a low of Rs 1,266 on the BSE. A total of 19,715 shares changed hands on the BSE so far.
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