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Bandhan Bank has received an exemption from the Securities and Exchange Board of India (SEBI) with respect to the one-year lock-in on sale of equity shares held by the promoter.
The exemption would help the bank comply with the Reserve Bank of India’s licensing norms which requires promoter holding to be brought down to 40 per cent within three years of starting operations. Promoter holding in the bank stands at 82.28 per cent.
“In continuation to our intimation dated September 28, 2018, it is hereby informed that we have received an exemption from SEBI with respect to lock-in of one year on the equity shares held by the promoter and eligibility condition of one year from listing in order to comply with the requirements of RBI licensing guidelines,” the bank said in a communication to stock exchanges on Friday.
The central bank had recently pulled up the bank for its failure to bring down the promoter holding. RBI had barred the bank from opening new branches and had also put a freeze on the remuneration of its MD and CEO, Chandra Shekhar Ghosh.
Bandhan Bank had grown from a microfinance institution to a bank in August 2015. So, ideally, it should have scaled down the promoter’s holding by August 2018.
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