The Reserve Bank of India has  sanctioned the scheme of Amalgamation of ING Vysya Bank Ltd with Kotak Mahindra Bank Ltd. and made it effective from April 01, 2015. Pursuant to the Scheme of Amalgamation, M/s Kotak Mahindra Bank Ltd. has today i.e. April 21, 2015 allotted the equity shares to the shareholders of the ING Vysya Bank Ltd.

The Reserve Bank of India has stated that post allotment of the above shares, the aggregate foreign shareholding in M/s Kotak Mahindra Bank Ltd. has reached the threshold limit. Therefore no further purchase of shares of M/s Kotak Mahindra Bank Ltd. would be allowed through Stock Exchanges in India on behalf of Non-Resident Indian (NRI)/Persons of Indian Origin (PIO)/Foreign Institutional Investors (FII)/ Registered Foreign Portfolio Investor (RFPIs) and through Global Depository Receipt (GDR)/ American Depository Receipt (ADR)/Foreign Direct Investment (FDI).

The Reserve Bank has notified this under schedule - I of FEMA Notification No. 20 dated May 03, 2000.

Ajit Prasad

Assistant General Manager

Foreign shareholding threshold reached - further market purchases in the bank barred for specified foreign investor categories. Sanctioned amalgamation and consequent allotment caused the transferee to reach the foreign shareholding threshold, leading to a prohibition on further acquisition of its shares on Indian stock exchanges for NRIs, PIOs, FIIs, Registered FPIs and by routes such as GDR, ADR and FDI under the applicable foreign exchange regulatory framework.