Kotak Mahindra Bank Board approves draft Scheme of Arrangement

Kotak Mahindra Bank Ltd has announced that the Board of Directors of the Company at its meeting held on September 29, 2006, inter alia, has considered and approved the draft Scheme of Arrangement for demerger of the Trading and Principal including Primary Dealership undertaking of Kotak Mahindra Capital Company Ltd (KMCC) to the Bank under Sections 391-394 of the Companies Act, 1956 ("Scheme") which was prepared by the committee appointed by the Board of Directors for this purpose.

The Scheme is subject to requisite approvals including those of Stock Exchanges under the Listing Agreement, shareholders, creditors, any regulatory authorities and sanction of the Scheme in terms thereof by the High Court of Judicature at Bombay.

Further the Company has informed that the Board of Directors of KMCC and Kotak Mahindra Securities Ltd (KMSL), at its meetings also held on September 29, 2006 has approved demerger of undertaking comprising of the Trading and Clearing operations and strategic investments of KMSL into KMCC, subject to necessary approvals.

Source : Equity Bulls

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