BENGALURU, Nov 29 (Reuters) - India"s central bank has allowed state-run insurance giant Life Insurance Corporation of India to increase its stake in Kotak Mahindra Bank Ltd (KTKM.NS) to up to 9.99%, the private sector lender said on Monday. The insurer has a 4.96% stake as of Sept. 30 and is its fifth largest shareholder, according to Refinitiv data. A raise to 9.99% would make it the second largest investor in the bank. While announcing reformed rules on the structure of private sector banks, the Reserve Bank of India had on Friday said that non-promoter share holdings would continue to be capped at 10% for individuals and non-financial institutions. read more Meanwhile, LIC is aiming to list on domestic bourses by March next year in an initial public offering estimated at $12 billion, set to be the country"s biggest. read more