The Bombay High Court on Thursday adjourned the hearing till March 12 on the private sector lender Kotak Mahindra Bank’s plea challenging the Reserve Bank of India’s (RBI) stance on promoter’s stake dilution.
Preference shares
The private lender had decided to issue preference shares for diluting promoter’s stake to 20%.
However, the central bank had rejected the mode, namely, the preference share route taken by the lender to dilute the stake.
The RBI had said that preference share issuance does not meet its ‘promoter holding dilution requirement.’
Kotak Bank had challenged the RBI’s decision in the Bombay High Court.
The court had asked the central bank to file its affidavit by January 17. The RBI counsel sought more time to file the affidavit. A division Bench comprising Justices B.P. Dharmadhikari and Revati Mohite Dere then posted the petition for hearing to March 12.
(With PTI inputs)
