Gets RBI Nod To Submit Scheme
Bank initial promoter lock-in expires on September 4, 2021
MUMBAI, July 10 (The CONNECT) – Equitas Small Finance Bank plans to amalgamate the promoter Equitas Holdings Limited (EHL) with the bank. Both the Equitas entities are listed on stock exchanges.
RBI has already permitted this process and now EHL will initiate steps to finalise the Scheme of Amalgamation, submit to the Boards of the Bank and EHL for approval and take further action.
A communique to this effect has been filed with the stock exchanges.
RBI, vide its communication dated July 09, 2021, has permitted the Bank to apply to RBI, seeking approval for Scheme of Amalgamation. RBI has also conveyed that any “no-objection”, if and when given on the Scheme of Amalgamation, would be without prejudice to the powers of RBI to initiate action, if any, for violation of any licensing guidelines or any terms and conditions of license, or any other applicable instruction.
In accordance with RBI’s SFB Licensing Guidelines of November 27, 2014, a promoter of Small Finance Bank can exit or to cease to be a promoter after the mandatory initial lock-in period of five years depending on the RBI’s regulatory and supervisory comfort and SEBI Regulations.
In case of Equitas Small Finance Bank Limited the said initial promoter lock-in expires on September 4, 2021. Hence, the Bank had requested RBI if a Scheme of Amalgamation of the promoter and holding company.
EHL scrip was quoted at Rs 115.35 and that of the Small Finance Bank Rs 64.95 yesterday.
