A man walks past the Kotak Mahindra Bank branch in New Delhi (File Photo | Reuters) 
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Kotak Mahindra Bank divests 10 per cent stake in ECA Trading Services to its arm

Kotak said that the divestment was done to comply with prudential limit stipulated by the Reserve Bank of India on investment in a non-financial services entity.

PTI

NEW DELHI: Kotak Mahindra Bank on Friday said it has divested 10 per cent stake in ECA Trading Services to one of its subsidiaries for nearly Rs 2 crore.

It said in a regulatory filing that Kotak Mahindra Bank has sold 1,09,48,925 equity shares of Rs 10 each (10 per cent of its stake) of ECA Trading Services Limited to Kotak Securities (a wholly-owned subsidiary of the bank), at a consideration of Rs 1.98 crore.

Kotak said that the divestment was done to comply with prudential limit stipulated by the Reserve Bank of India on investment in a non-financial services entity. "The holding of the bank at the consolidated level continues to be 20 per cent," the filing added.

The lender said that the transaction was completed on March 4, 2021. Kotak Mahindra Bank stock was trading 0.06 per cent up at Rs 1,898 apiece on BSE in morning trade.

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