RBI allows FIIs to buy shares of Kotak Mahindra Bank

Friday, Jul 11, 2014,12:23 IST By metrovaartha A A A

The Reserve Bank of India (RBI) yesterday allowed overseas investors to buy shares of private sector lender Kotak Mahindra Bank.
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‘Hence, restrictions placed on purchase of shares of Kotak Mahindra Bank are withdrawn with immediate effect,’ RBI statement said RBI has also notified that all approvals received against the bank’s shares are duly cancelled.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.
Earlier, 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.