The court observed that the RBI was a responsible regulator and it would leave it to the central bank's wisdom to further deliberate on whether the mandated norms were met by the bank within the deadline. Kotak Mahindra Bank had moved the Bombay High Court on December 10 after the central bank did not accept the reduction of promoter shareholding through an issue of preference shares. In August, the lender issued perpetual non-convertible preference shares, which it said would trim promoters' shareholding from 30.3 per cent to 19.7 per cent. The bank's counsel argued that in such a short period, the only option would be to bring in a foreign investor.