RBL Bank (formerly Ratnakar Bank) has settled securities market-related violation with the Securities and Exchange Board of India (Sebi) under the consent mechanism. The move paves the way for the initial public offering of the private-sector lender.
RBL Bank was in breach of ‘deemed public issue’ norms of the Companies Act after it allotted 1.8 million shares to 4,892 investors. The lender had filed an application beforeSebi in November 2015 to settle the violation under the consent route.
Under this, an alleged wrongdoer can settle the matter with Sebi by paying a monetary penalty and fulfilling any further condition laid out.
RBL Bank paid Rs 47.6 lakh as the part of the consent terms to Sebi. Further, it provided an exit opportunity to its investors. The settlement order was passed on May 30 with immediate effect.
It offered shareholders a price higher than the allotment price plus interest at the rate of 15 per cent and the fair value estimated by the lender, which is Rs 90. The lender has given shareholders 21 days to decide either to sell at the conditional price or to stay invested in. However, RBL informed Sebi it has not received any response from shareholders.
Sandip Ginodia , Director
RBL Bank was in breach of ‘deemed public issue’ norms of the Companies Act after it allotted 1.8 million shares to 4,892 investors. The lender had filed an application beforeSebi in November 2015 to settle the violation under the consent route.
Under this, an alleged wrongdoer can settle the matter with Sebi by paying a monetary penalty and fulfilling any further condition laid out.
RBL Bank paid Rs 47.6 lakh as the part of the consent terms to Sebi. Further, it provided an exit opportunity to its investors. The settlement order was passed on May 30 with immediate effect.
It offered shareholders a price higher than the allotment price plus interest at the rate of 15 per cent and the fair value estimated by the lender, which is Rs 90. The lender has given shareholders 21 days to decide either to sell at the conditional price or to stay invested in. However, RBL informed Sebi it has not received any response from shareholders.
Sandip Ginodia , Director
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This shows how much SEBI is helping companies in getting listed good work SEBI
ReplyDeleteVery True!
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