This Article is From Jul 10, 2014

RBI Allows Overseas Investors to Buy Kotak Bank Shares

The Reserve Bank of India (RBI) on Thursday allowed overseas investors to buy shares in Kotak Mahindra Bank.
The RBI said that shareholding by foreign institutional investors (FIIs) under the portfolio investment scheme in the private sector lender 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"Hence, restrictions placed on purchase of shares of Kotak Mahindra Bank are withdrawn with immediate effect," the RBI said in a statement.
"Equity shares of Kotak Mahindra Bank can now be purchased through primary market and stock exchanges," the RBI said.
After foreign shareholding in the bank had hit the trigger limit for FIIs, the 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 a 35.09 per cent stake in Kotak Bank as of June 2014.
Shares in Kotak Mahindra Bank, on Thursday, ended at Rs 867.15 apiece on the BSE, up 0.43 per cent from the previous close.