Reserve Bank allows overseas FIIs to buy Kotak Bank shares

The Reserve Bank of India (RBI) allowed overseas investors today, to buy shares of private sector lender Kotak Mahindra Bank.
The RBI said that shareholding by foreign institutional investors (FIIs) under the portfolio investment scheme in the bank has gone below the prescribed threshold limit stipulated under FDI rules.
"Hence, restrictions placed on purchase of shares of Kotak Mahindra Bank are withdrawn with immediate effect," the RBI said in a statement issued here today.
The central bank has also notified that all approvals received against the bank's shares are duly cancelled.
"Equity shares of Kotak Mahindra Bank can now be purchased through primary market and stock exchanges," RBI said.

After foreign shareholding in the bank had hit the trigger limit for FIIs, RBI had last month said any further purchase of equity shares of the bank by them would be allowed only after obtaining its prior approval.
As per the BSE data, FIIs held 35.09 percent in Kotak Bank as of June 2014.
The scrip of the bank closed at Rs 867.15, up 0.43 per cent on the BSE, which declined 72 points today.