MUMBAI: Billionaire banker Uday Kotak has told the Bombay High Court that he differs with the regulator’s interpretation of promoter holding in banks, and that the owners’ stake in Kotak Mahindra BankNSE -0.11 % as a percentage of paid-up capital was in line with rules.
Kotak also pointed out that the RBI never communicated with the promoters on the issue of shareholding. He made the strongly worded submission in an affidavit in the case challenging the RBI’s directive asking the promot ..
“Over the years, the promoter shareholding reduction was communicated by the RBI to the bank as a percentage of paidup capital,” he said in the affidavit. “There has been no communication by the RBI to the promoters on this issue for the past 16 years since the bank got its licence in 2003.”
ET has seen the affidavit, which was submitted to the Bombay High Court on April 15.
DISPUTE ON SINCE 2014
“The 2001 guidelines and the licence require promoter shareholding to be a percentage of the paid-up capital of the bank,” Kotak said
The central bank has been engaged in a dispute with Kotak since 2014 for having failed to meet the first milestone stake reduction. In August 2018, the promoters sought to lower their stake to 19.7% through the sale of perpetual non-cumulative preference shares. The plan was rejected by the RBI. It’s said to have reasoned that the instruments were interest-bearing and derivative in nature with a call option after five years and therefore not equivalent to equity. The RBI wants promoters to reduc ..
Kotak also pointed out that the RBI never communicated with the promoters on the issue of shareholding. He made the strongly worded submission in an affidavit in the case challenging the RBI’s directive asking the promot ..
“Over the years, the promoter shareholding reduction was communicated by the RBI to the bank as a percentage of paidup capital,” he said in the affidavit. “There has been no communication by the RBI to the promoters on this issue for the past 16 years since the bank got its licence in 2003.”
ET has seen the affidavit, which was submitted to the Bombay High Court on April 15.
DISPUTE ON SINCE 2014
“The 2001 guidelines and the licence require promoter shareholding to be a percentage of the paid-up capital of the bank,” Kotak said
The central bank has been engaged in a dispute with Kotak since 2014 for having failed to meet the first milestone stake reduction. In August 2018, the promoters sought to lower their stake to 19.7% through the sale of perpetual non-cumulative preference shares. The plan was rejected by the RBI. It’s said to have reasoned that the instruments were interest-bearing and derivative in nature with a call option after five years and therefore not equivalent to equity. The RBI wants promoters to reduc ..
0 Comments