InvestorQ : Is it true that now FPIs can once again start investing in Kotak Mahindra Bank?
Arya Nanda made post

Is it true that now FPIs can once again start investing in Kotak Mahindra Bank?

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Anjana Aiyar answered.
2 weeks ago
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Kotak Bank has been seeing heavy FII selling in the last few quarters. In fact, FPI holdings in Kotak Bank has fallen for seven quarters in succession and during this period it has fallen from 45.09% in December 2020 to 40.55% in June 2022. The net result is that this has raised the room available for the foreign portfolio investors to invest in Kotak Bank up to another 20.01%. FPIs are allowed to go up to 60.10% in Kotak Bank.

Kotak Bank was deleted from the FTSE All-World Index after the new rule of minimum headroom was introduced in September 2014 as a criteria for inclusion in global indices. Now, finally, the headroom for FPIs in Kotak Bank has once again crossed 20% and so it would be once again eligible for inclusion. However, that does not mean that it would be immediately included in the list or that FPI flows into Kotak Bank will start immediately.

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