Newsletter dated 02nd September, 2016

1. www.csrajivbajaj.com
THOUGHT OF THE DAY
THOUGHT OF THE DAY
"Success is committing to give your best no matter what the
circumstances.”
Law Updates:
 Bank can purchase auction property of borrower in absence of any
response from bidder: Supreme Court.
 Call option for 150 years is a capital asset if buyer authorized to
exercise rights of shareholder: Tribunal Mumbai.
 Land acquired by Tata Motors from farmers and cultivators of West
Bengal was to be restored to cultivators and compensation paid to
cultivators for such acquisition was not to be recovered by State
Government: Supreme Court.
 TPO to reconsider whether INR denominated debentures could be
benchmarked at Indian interest rate or LIBOR: ITAT Delhi.
 High Court restricts Sec. 54F relief as entire consideration wasn't
invested before filing of belated return.
 High Court could allow appointment of Arbitrator even if recovery
proceeding before DRT had been initiated.
PROFESSIONALS INPUTS:
 RBI vide Notification No. RBI/2016-17/56 dated 01st
September
2016 had amended certain guidelines relating to sale of non-
performing assets (NPAs) by banks to Securitisation Companies
(SCs)/ Reconstruction Companies (RCs) (created under the
Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002) vide circular dated
February 26, 2014.
.
MARKET WATCH:
SENSEX: 2,8423.48 -28.69 NIFTY: 8,774.65 -11.55
SILVER: 44,162.00 26.00 GOLD (MCX): 30,703.00 -111.00
USD/INR: 66.81 -0.01 CRUDE OIL: 2,994.00 -116.00
CS Rajiv Bajaj
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Date: 02nd
September, 2016

2. www.csrajivbajaj.com
Uday Kotak
M.D. of Kotak Mahindra Bank
Uday Kotak (born 15 March 1959) is an Indian banker; executive vice chairman
and managing director of Kotak Mahindra Bank.
In early 1980s, while India was still a closed economy and economic growth was
muted, Uday Kotak decided to start out on his own, refusing a lucrative job
option from a multinational. Over the next few years, he diversified his business
into various areas of financial services, establishing a prominent presence in bills
discounting, stockbroking, investment banking, car finance, life insurance and
mutual funds. On 22 March 2003, Kotak Mahindra Finance Ltd. became the first company in India’s corporate
history to receive a banking license from Reserve Bank of India.
Forbes estimated his wealth to be $4.1 billion in 2012. In 2006 he ended a 14-year partnership with Goldman
Sachs by acquiring its 25% stake in two subsidiaries for $72 million. In June 2014, he was named Ernst &
Young World Entrepreneur of the Year 2014.
Early Life & Education
Kotak was raised in an upper middle class Gujarati joint-family household with 60 persons sharing a common
kitchen under one roof. The family was originally into cotton trading. He called this "Capitalism at work and
Socialism at home".
His two pastimes had been cricket and playing the sitar. In a 2014 interview with NDTV he admitted that he
was no longer pursuing his playing of the sitar.
His talent in mathematics influenced his choice of career. He obtained his Bachelor's Degree from Sydenham
College and completed his post-graduation in management studies in 1982 from Jamnalal Bajaj Institute of
Management Studies.
Career
After completing his MBA, Kotak started Kotak Capital Management Finance Ltd. (which later became Kotak
Mahindra Finance Ltd.) From a seed capital of less than US$80,000 borrowed from family and friends, he
converted a bill-discounting start-up into a financial services conglomerate with assets of US$19 billion (as of
March 31, 2014), and the fourth largest private bank by market capitalization in India with over 600 branches.
During 2014, Kotak almost doubled his wealth as shares of his Kotak Mahindra Bank hit an all-time high after
he sealed a $2.4 billion deal in November 2014 for rival ING Vysya Bank, partly owned by Dutch financial
services group ING.
In 2015, Kotak enters the general insurance business and is partnering telecom magnate Sunil Mittal's Bharti
Airtel to start a small payments bank.
Kotak has reduced his stake in the Kotak Mahindra Bank to 40% as he is required to bring down his holding to
30% by 2016.
Memberships
Kotak is a member of the Government of India’s High Level Committee on Financing Infrastructure, the
Primary Market Advisory Committee of the Securities & Exchange Board of India, Member of the Board of
Governors of the National Institute of Securities Markets and ICRIER