In The Event, If The Aggregate Holding Falls Below 5%, Prior Approval Of RBI Will Be Required To Increase It To 5% Or More Of The Paid-Up Share Capital Or Voting Rights Of The Bank
FinTech BizNews Service
Mumbai, May 14, 2024: In an exchange filing RBL Bank has declared that RBI has approved quant Money Managers Ltd to acquire ‘aggregate holding’ of up to 9.98% of the paid-up share capital or voting rights in RBL Bank Ltd through various schemes of quant Mutual Fund.
The quant Mutual Fund through its various scheme held 4.68% of the equity share capital of the Bank as of May 10, 2024. The approval has been granted with reference to the application made by quant Money Managers Ltd. to RBI.
The aforesaid approval granted by RBI is subject to the conditions mentioned therein including compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as
amended from time to time), provisions of the Foreign Exchange Management Act, 1999, regulations issued by Securities and Exchange Board of India, and any other statutes, regulations and guidelines, as applicable.
As per the RBI Letter, quant Money Managers Ltd has been accorded the approval to acquire through various schemes of quant Mutual Fund, the aforesaid major shareholding in the Bank within a period of one year i.e. by May 12, 2025 and to ensure that the aggregate holding in the Bank does not exceed 9.98% of the paid-up share capital or voting rights of the Bank at all times. Further in the event, if the aggregate holding falls below 5%, prior approval of RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights of the Bank.
