Bandhan Bank gets SEBI exemption for one-year promoter share lock-in

Bandhan Bank shares subsequently listed on the exchanges on March 27th.

Kolkata-based private sector lender has recieved SEBI exemption with respect to regulatory requirement of  a one year lock-in period on promoter shares. According to SEBI rules, promoter shares must be necessarily be locked-in for a period of one year post listing. Bandhan Bank had come out with its public offer in March this year. The shares subsequently listed on the exchanges on March 27th.

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“In continuation to our intimation dated September 28, 2018,it is hereby informed that the Bank has received an exemption from the Securities and Exchange Board of India with respect to (i) lock-in of one year on the equity shares held by the promoter; and (ii) eligibility condition of one year from listing;” Bandhan Bank said in a stock exchange filing. Earlier, the RBI had disallowed Bandhan Bank from opening new branches without approval, and also ordered the private sector lender to freeze CEO Chandra Shekhar Ghosh’s salary over its failure to meet shareholding rules.

RBI has communicated to us that since the bank was not able to bring down the shareholding of non operative financial holding company to 40%, as required under the licensing condition, general permission to open new branches stands withdrawn and the bank can open branches with prior approval of RBI and the remuneration of the MD and CEO of the bank stands frozen at the existing level, till further notice,” the bank had said statement on BSE. Bandhan Bank shares closed at Rs 464.85 on NSE this afternoon.

Source: Financial Express