Kotak takes RBI to court over promoter shareholding issue
Kotak Mahindra Bank has moved Bombay High Court after the RBI restricted it from reducing promoter holding to mandated level using Perpetual Non-Convertible Preference Shares (PNCPS). MD and CEO Uday Kotak had proposed to reduce his holding using preference shares rather than bringing down his share of common equity. However, RBI said issuing PNCPS to dilute promoter holding wasn't acceptable.