Kolkata-based private lender Bandhan Bank on Friday said the capital markets regulator has exempted it from rules governing the post-listing lock-in period for promoter shareholdings in companies.
“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; as required under regulations 36(b) and 82(b) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2009, respectively, in order to comply with the requirements of RBI Licensing Guidelines for Private Sector Banks issued on February 22, 2013,” Bandhan Bank said in a notification to the stock exchanges.
In the absence of such an exemption, the bank had been unable to reduce the stake held by Bandhan Financial Holdings from 82% to 40% to comply with the central bank’s ownership norms for private banks. At the end of June 2018, Bandhan Financial Holdings held an 82.28% stake in the bank.
Bandhan Bank was listed on the exchanges on March 27, 2018.
Last month, the Reserve Bank of India (RBI) had asked Bandhan Bank to stop opening new branches while also freezing the chief executive Chandra Shekhar Ghosh’s salary as penalty for not complying with the relevant shareholding norms.
According to RBI’s guidelines for licensing of new banks in the private sector, when an NBFC launches a private bank through an NOFHC, it shall initially hold a minimum of 40% of the paid-up voting equity capital of the bank, which shall be locked in for a period of five years and which shall be brought down to 15% within 12 years.
Bandhan Bank’s shares ended 0.42% lower than the previous close at `468.85 on the BSE on Friday. The notification appeared on the exchanges after the close of trade.
Source: Financial Express