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BNP Paribas' open offer for Geojit runs into roadblock
Sources say that the BNP Paribas' open offer for Geojit may have run into a roadblock. The RBI approval for this open offer is not yet in. the regulator maybe wary of NBFCs been used as a backdoor entry route by foreign banks to increase their branch presence in India
Sources say that the BNP Paribas' open offer for Geojit may have run into a roadblock.
The RBI approval for this open offer is not yet in. We understand that the regulator maybe wary of NBFCs been used as a backdoor entry route by foreign banks to increase their branch presence in India. Therefore we understand that the approval for the open offer is still not come in. BNP Paribas says that it does not think that is the issue. But we got no comment on this matter from the RBI as yet.
BNP holds the largest stake of about 27.18% in Geojit Financial and is the single largest promoter of this company now. In July last year, BNP made an open offer for an additional 20% in Geojit Financials that was the time when Geojit also proposed changing its name to Geojit BNP Paribas Financial Services.
In April last year, Geojit Financials had increased its stake in its subsidiary to about 51%. That made Geojit Financials the majority holder in the NBFC and the NBFC is the route of the problem that's the reason why BNP Paribas is not getting an approval for the open offer for Geojit Financials.
