Home / Finance / News / RBI accepts Kotak Bank promoters' plan to cap voting rights, reduce stake

RBI accepts Kotak Bank promoters' plan to cap voting rights, reduce stake

Private lender withdraws writ petition from Bombay High Court

Kotak buys out Old Mutual's 26% stake for Rs 1,293 cr in insurance arm

Premium

3 min read Last Updated : Jan 31 2020 | 7:14 AM IST

Private sector lender Kotak Mahindra Bank on Thursday said that the Reserve Bank of India (RBI) had given in-principle approval to its proposal on stake reduction in the bank and capping the promoters’ voting rights.

In a letter dated January 29, the RBI conveyed to the bank that the promoters would have to bring down their shareholding to 26 per cent of the paid-up voting equity share capital within six months of receiving the final approval from the central bank.

According to RBI rules, the bank was mandated to reduce promoter shareholding to 20 per cent by December 31, 2018,

Topics : Kotak Mahindra Bank Reserve Bank of India Bombay High Court

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in