The Bombay High Court on Monday refused to stay the central bank's decision of not allowing promoter stake sale in Kotak Mahindra Bank and said it would hear the case next on January 17, news channel CNBC TV18 reported.
The bank last week challenged in court the Reserve Bank of India's (RBI’s) decision of not allowing its promoter to issue preference shares to reduce stake in the private-sector lender.
Uday Kotak, the head of Kotak Mahindra, has been asked by the RBI to lower his holding in the company to 20 per cent by the end of the year, and to 15 per cent by March 31, 2020.
Shares of Kotak Mahindra Bank fell over 3 percent on the news.
Disclosure: Entities controlled by the Kotak family have a significant shareholding in Business Standard.