The Bombay High Court refused to provide interim relief to private lender Kotak Mahindra Bank in the matter of reducing promoter holding to below 20 per cent.
The matter will be heard next on January 17, 2019. From the private lender's side, senior counsel Darius Khambatta requested the court to direct the central bank to not take any coercive action against Kotak Mahindra Bank.
The Reserve Bank of India (RBI) has set a deadline for the bank to reduce promoters’ stake to 20 per cent of paid-up capital by December 31, 2018, and to 15 per cent by March 31, 2020.
The court said that RBI is a responsible regulator and that it would leave it to the central bank's wisdom.
Kotak Mahindra Bank had moved the Bombay high court on December 10 when the central bank had not accepted the reduction of promoter shareholding via issue of preference shares. Kotak Mahindra Bank in August issued perpetual non-convertible preference shares, which it said would trim promoters’ shareholding from 30.3 per cent to 19.7 per cent.
Kotak Mahindra Bank’s counsel argued that in such a short period the only option the bank would have is to bring in a foreign investor.
Shares of Kotak Mahindra Bank were trading three per cent lower at Rs 1,218 at 2:30 PM.
Disclosure: Entities controlled by the Kotak family have a significant shareholding in Business Standard
The matter will be heard next on January 17, 2019. From the private lender's side, senior counsel Darius Khambatta requested the court to direct the central bank to not take any coercive action against Kotak Mahindra Bank.
The Reserve Bank of India (RBI) has set a deadline for the bank to reduce promoters’ stake to 20 per cent of paid-up capital by December 31, 2018, and to 15 per cent by March 31, 2020.
The court said that RBI is a responsible regulator and that it would leave it to the central bank's wisdom.
Kotak Mahindra Bank had moved the Bombay high court on December 10 when the central bank had not accepted the reduction of promoter shareholding via issue of preference shares. Kotak Mahindra Bank in August issued perpetual non-convertible preference shares, which it said would trim promoters’ shareholding from 30.3 per cent to 19.7 per cent.
Kotak Mahindra Bank’s counsel argued that in such a short period the only option the bank would have is to bring in a foreign investor.
Shares of Kotak Mahindra Bank were trading three per cent lower at Rs 1,218 at 2:30 PM.
Disclosure: Entities controlled by the Kotak family have a significant shareholding in Business Standard
No comments:
Post a Comment