Markets regulator Sebi has imposed a penalty of Rs 3 crore on five entities, including former promoters, in the case of alleged insider trading in the shares of erstwhile Bank of Rajasthan
To check possible violation of insider trading norms, the regulator had conducted an investigation into the movement of BoR shares from May 7-18, 2010.
Former chairman of State Bank of India AK Purwar says even larger banks will start feeling the heat and pinch of this, not just midcap and small banks. In a neck and neck competition, he says: â€œIt will become a question of survival of the fittest.â€
While the combined entity coming into existence, the complete amalgamation of operations and staff integration will happen over the course of one year. After the merger, ING Vysya's around 547 bank branches will be re-branded as Kotak Mahindra Bank outlets.
The merger would be done through a share swap in which 725 equity shares of Rs 5 each of Kotak Mahindra will be issued for every 1,000 shares of Rs 10 each held in ING Vysya Bank.
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.
The case pertains to wrongful disclosure of shareholding norms by the bank and the penalty levied by Sebi thereafter.
Sebi today imposed total penalty of Rs 5.75 lakh on two brokerage firms related to a probe into the affairs of erstwhile Bank of Rajasthan (BoR) and its promoters.
India's largest private lender ICICI Bank today said it will add new 1,500 branches in the next three years, taking the total to 4,000, and focus on financing infrastructure projects.
He may have championed the cause of investor protection and cracked the whip on erring corporate houses, but SEBI chairman CB Bhave will be best known for giving the mutual fund industry sleepless nights. CNBC-TV18's Tanvi Shukla and Vidhi Godiawala wrap up his three-year term.