The Reserve Bank of India (RBI) has notified that foreign institutional investors (FIIs) or foreign portfolios investors (FPIs) can now invest from 40 per cent to 42 per cent of the paid up capital of Kotak Mahindra Bank under the portfolio investment scheme (PIS).

RBI, said, ''The company has passed resolutions at its board of directors' level and a special resolution by general body agreeing for enhancing the limit from 40% to 42% of the paid up capital of the company. The Reserve Bank has notified this under FEMA 1999.'' 

Shares of the bank gained Rs 2.9, or 0.35%, to trade at Rs 827.80. The total volume of shares traded was 38,928 at the BSE (10.05 a.m., Friday).