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Last Updated : Nov 20, 2014 07:22 PM IST | Source: CNBC-TV18

CBI to probe RBI's role in Bank of Rajasthan merger case

Sources says that the investigative agency will also be looking at the role of RBI to ascertain if the regulator failed to take appropriate action against Bank of Rajasthan‘s erstwhile promoters before giving a green signal to the amalgamation in 2010.


After the market regulator Securities and Exchange Board of India (Sebi), the Reserve Bank of India may find itself in the CBI's cross-hairs. Sources says that the investigative agency will be looking at the role of RBI to ascertain if the regulator failed to take appropriate action against Bank of Rajasthan’s erstwhile promoters before giving a green signal to the amalgamation in 2010.


The investigative agency CBI will widen the net in the ongoing preliminary enquiry against Bank of Rajasthan’s erstwhile promoters and Sebi officials. CBI will investigate the role of the Reserve Bank of India in allowing amalgamation of Bank of Rajasthan in 2010.


The investigative agency will ascertain if RBI failed to take appropriate action against BoR’s erstwhile promoters and take stringent measures before giving a go-ahead to the Tayal Group for the amalgamation. CBI will also probe whether RBI’s merger nod was justified given Tayal Group’s excess shareholding in BoR and if RBI deliberately failed to detect irregularities before allowing the merger.

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CBI had registered a preliminary enquiry against few Sebi officials for not levying adequate penalty on BoR promoters. CBI’s enquiry relates to a 2010 Sebi order against Tayal Group that imposed a Rs 30 crore penalty.

First Published on Nov 20, 2014 02:00 pm
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