RBI allows SBI Mutual Fund to acquire up to 9.99% of paid-up share capital in Induslnd bank

RBI added that the aforesaid approval granted by RBI is subject to the conditions and any other statutes, regulations and guidelines, as applicable

The Reserve Bank of India (RBI) on October 11 gave approval to the SBI Mutual Fund (SBIMF) to acquire up to 9.99 per cent of paid-up share capital or voting rights in the Induslnd Bank.

“The approval has been granted with the reference to the application made by SBIMF to RBI,” a release from the central bank said.

It added that 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.

SBIMF has been advised by RBI to acquire the aforesaid major shareholding in the Bank within a period of one year i.e., by October 10, 2024.

"Further, SBI MF must ensure that the aggregate holding in the Bank does not exceed 9.99 percent of the paid-up share capital or voting rights of the Bank at all times," said bank's statement.