The proposal of microfinance group Bandhan Financial Services and Kerala-based Catholic Syrian Bank will also be considered in FIPB meeting.
The FIPB, chaired by Finance Secretary Rajiv Mehrishi, will also consider 12 other foreign investment proposals in its meeting on July 3, as per the FIPB agenda.
Shares of Kotak Mahindra Bank gained more than 2 percent intraday Tuesday on getting approval from its shareholders for bonus issue.
The government approved proposals for foreign direct investment amounting to around Rs 4,000 crore by four pharma and medical devices firms, including Torrent, Biocon's research services arm Syngene and two other firms.
An inter-ministerial panel on Monday deferred decision for the second time on Kotak Mahindra Bank's proposal for raising foreign investment limit in the bank to 55 percent.
If the FIPB allows Kotak to up FII limit to 55 percent, an increase in the foreign limit to over 50 percent would automatically qualify the bank as 'foreign-owned', leading to the conundrum of how to treat the bank's stake in its insurance business.
Private sector lender Kotak had approached Foreign Investment Promotion Board (FIPB) to seek the nod for raising foreign investment cap to 55 percent.
Earlier this month, the Foreign Investment Promotion Board (FIPB) had approved the two deals worth Rs 1,290 crore.
Inter-ministerial body Foreign Investment Promotion Board clears investment proposals of up to Rs 3,000 crore.
The Foreign Investment Promotion Board (FIPB), headed by Finance Secretary Rajiv Mehrishi, is scheduled to meet on April 30 to take up the proposals, said the Finance Ministry.
In a bid to attract more foreign investment in the country, government is looking at a slew of measures including liberalising FDI norms for NRIs and manufacturing firms to sell products through e-commerce portals.
In the Modi government‘s first Budget in July, the government had said it will promote foreign direct investment (FDI) selectively in sectors and raise the composite cap of foreign investment to 49 percent with full Indian management and control through FIPB route.
Rajasthan High Court on January 13 dismissed the plea of minority shareholder Jindal Securities and three others seeking listing of SSTL in a fixed timeframe and exit from the company at a pre-determined price.
The Finance Ministry today said it has cleared 12 FDI applications, including that of Ratnakar Bank to raise foreign equity limit to 74 percent, entailing total investment of Rs 1,827.24 crore.
The first meeting of the Foreign Investment Promotion Board this year, to be held on January 22, will see 36 FDI proposals being considered including those of Indian Energy Exchange, Viacom 18 Media, Glenmark Pharmaceuticals and Johnson & Johnson.
"Based on the recommendations of Foreign Investment Promotion Board (FIPB), government has approved 8 proposals of Foreign Direct Investment amounting to Rs 34.77 crore approximately," an official release said today.
HDFC Bank had applied for yet another FIPB approval, this time for expanding its equity base by up to Rs 10,000 crore, sources said.
Foreign equity participation in the Company including FDI and Investment by any foriegn institutional investor through portfolio investment have been capped at 32.99 percent of the paid-up equity capital of the company, the filing said.
FDI in medical devices sector is permitted through the government-approval route and the industry has been demanding that it be put under the automatic route.
The government will consider 31 foreign investment proposals, including that of Ratnakar Bank, Novartis Healthcare and HDFC Bank, on December 16.
The proposals were cleared by Foreign Investment Promotion Board (FIPB) headed by the Economic Affairs Secretary in its meeting held earlier this month.
The large cap company had applied to the Reserve Bank of India (RBI) to up FII shareholding limit to 49 percent in October 2013. The central bank approached the FIPB for clarity on policy.
In an interview to CNBC-TV18, Keki Mistry clarified that HDFC would like to maintain its stake in the bank and that the company board will decide whether its needs to change the stake pattern.
HDFC Bank had approached the FIPB last year for increasing the foreign holding in the bank to 67.55 percent from 49 percent. But parent HDFC Ltd 's share holding of 22.56 percent stake in HDFC Bank remained a bone of contention since it was considered to be FDI by Finance and Industry ministry.
FIPB has regularised the bank's existing shareholding which includes nearly 74 percent foreign holding in the bank. However, this might attract some penalty for HDFC Bank.