The Reserve Bank of India (RBI) on Thursday (December 28) approved ICICI Prudential Asset Management Company Ltd (ICICI AMC) for the acquisition of up to 9.95% of the paid-up share capital of the Federal Bank Ltd.
"...we wish to inform you that the Federal Bank Ltd has received an intimation from the Reserve Bank of India (“RBI”) on December 28, 2023, that it has accorded its approval to ICICI Prudential Asset Management Company Ltd (ICICI AMC) for acquiring aggregate holding of up to 9.95% of the paid up Share Capital or Voting Rights of the Bank subject to the conditions specified therein," according to a stock exchange filing.
The formal intimation from RBI, received by the Federal Bank on December 28, 2023, outlines the regulatory nod for ICICI AMC's strategic move, the Federal Bank said.
The approval comes with certain conditions specified by RBI, mandating compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI's Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, regulations issued by the Securities and Exchange Board of India (SEBI), and any other applicable guidelines, regulations, and statutes.
Shares of Federal Bank Ltd ended at ₹155.45, up by ₹1.55, or 1.01%, on the BSE.
(Edited by : Shoma Bhattacharjee)
