RBI Approves ING Vysya and Kotak Mahindra Merger; Foreign Shareholding Hits Limit Under FEMA Notification No. 20.

The Reserve Bank of India has approved the merger of ING Vysya Bank Ltd with Kotak Mahindra Bank Ltd, effective April 1, 2015. Following the merger, Kotak Mahindra Bank allotted equity shares to ING Vysya's shareholders. As a result, the foreign shareholding in Kotak Mahindra Bank has hit the regulatory threshold limit. Consequently, no further share purchases by Non-Resident Indians, Persons of Indian Origin, Foreign Institutional Investors, Registered Foreign Portfolio Investors, or through Global Depository Receipts, American Depository Receipts, and Foreign Direct Investment are permitted. This restriction is notified under FEMA Notification No. 20.