Equitas Holdings — the promoter of Equitas Small Finance Bank — stated the financial institution has acquired the Reserve Bank of India’s (RBI) approval to use for amalgamation of the promoter into itself.
As per the SFB licensing tips of RBI, a promoter of an SFB can exit or stop to be a promoter after the obligatory preliminary lock-in interval of 5 years (preliminary promoter lock-in) relying on RBI’s regulatory and supervisory consolation and Sebi rules at the moment. “In the case of Equitas Small Finance Bank (the bank), our subsidiary for which the company is the promoter, the said initial promoter lock-in for the company expires on September 4, 2021,” Equitas Holding stated in a regulatory submitting on Saturday.
The financial institution had requested RBI if a scheme of amalgamation of the corporate with the financial institution, leading to exit of the promoter, could be submitted to RBI for approval, previous to the expiry of the stated 5 years, to take impact after the preliminary promoter lock-in expires, it added.
“The RBI vide its communication dated July 9, 2021, to the bank has permitted the bank to apply to RBI seeking approval for scheme of amalgamation,” Equitas Holdings stated.
The central financial institution has additionally conveyed that any ‘no objection’, if and when given on the scheme of amalgamation, can be with out prejudice to the powers of RBI to provoke motion, if any, for violation of any licensing tips or any phrases and circumstances of license, or another relevant instruction, the promoter firm added.
“Accordingly, we would be initiating steps to finalise the scheme of amalgamation, submit to the boards of the company and the bank for approval, and take further action thereafter in accordance with applicable regulations and guidelines,” it stated.
Equitas SFB’s IPO was subscribed 1.95 occasions and its shares have been listed in November 2020.
