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The RBI’s approval, communicated through a letter dated February 12, allows Zulia Investments and its associates to purchase the specified stake within one year from the approval date, AU Small Finance Bank informed the stock exchanges.
If the acquisition is not completed within this timeframe, the approval will be considered cancelled, as per the stock exchange filing.
This move marks a significant development for AU Small Finance Bank as Zulia Investments, which operates under its parent company Temasek Holdings, is a prominent global investor.The RBI’s approval is contingent upon compliance with several regulatory frameworks, including the Banking Regulation Act, 1949, the RBI’s Master Direction on Acquisition and Holding of Shares in Banking Companies, the Foreign Exchange Management Act (FEMA), and the regulations set by the Securities and Exchange Board of India (SEBI).
In the stock exchange filing, AU Small Finance Bank said that it received a copy of letter of the RBI dated February 12 addressed to Zulia Investments Pte. Ltd.“The RBI has accorded its approval to the Zulia Investments Pte. Ltd (along with its persons acting in concert and associate enterprises) to acquire ‘aggregate holding’ of up to 7% of the paid-up share capital or voting rights in the AU SFB within one year from the date of RBI approval letter, failing which RBI approval shall stand cancelled,” AU SFB said.
The lender emphasised that the acquisition will be executed in accordance with all relevant laws and regulations, ensuring full compliance with Indian financial and banking guidelines.
In January, RBI accorded approval to HDFC Bank to acquire up to 9.50% stake in AU Small Finance Bank within one year from the date of receiving the approval letter, failing which the central bank’s approval shall stand cancelled.
Shares of AU Small Finance Bank were trading 0.03 % higher at ₹ 554.55 on the BSE around 11.23 am.
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