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The Reserve Bank of India (RBI) on Friday approved the amalgamation scheme between Equitas Holdings Limited and Equitas Small Finance Bank, subject to certain conditions.
“We would like to inform that RBI vide its letter dated May 6, 2022 has conveyed its ‘no-objection’ to our proposal for voluntary amalgamation of Equitas Holdings Limited with Equitas Small Finance Bank Limited subject to conditions”, the company informed the exchanges.
The RBI has asked Equitas Holdings Limited to divest its shareholding in its subsidiary, Equitas Technologies Limited, prior to the scheme taking effect. It has also specified that Equitas Small Finance Bank has to take regulator’s prior approval for bringing Equitas Development Initiatives and Equitas Healthcare Foundation (EHF) under its ambit prior to scheme taking effect.
Also, any investor which will be acquiring 5 per cent stake in Equitas Small Finance Bank after the merger comes into effect will need RBI’s prior approval within one month from the date of the letter and till they are found “fit and proper” by the regulator, their voting rights in Equitas Small Finance Bank will be restricted to below 5 per cent of total voting rights of shareholders of the bank.
Further, the scheme has to be approved by the requisite majority of shareholders and creditors of Equitas Holdings Limited and Equitas Small Finance Bank Limited as per applicable procedure. The documents in connection with shareholder meetings have to be submitted to RBI as required under applicable RBI regulations.
The bank has to get the National Company Law Tribunal’s approval for the scheme of amalgamation and submit the same to RBI.
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