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Stock impact report

Reserve Bank of India clears Emirates NBD's stake purchase in RBL Bank [Yahoo! Finance]

Sumitomo Mitsui Financial Group Inc Unsponsored American Depositary Shares (Japan) (SMFG) 
US:NYSE Investor Relations: smfg.co.jp/english/investor
Company Research Source: Yahoo! Finance
The approval requires the investor to hold at least 51%, after which RBL would be treated as a foreign bank operating through a subsidiary structure, with the Dubai-based lender as the overseas parent. RBL has been told to revise its Articles of Association and seek RBI consent for the changes. The central bank has also indicated it does not object to Emirates NBD being treated as RBL's promoter, subject to Securities and Exchange Board of India rules. Even if the equity purchase goes ahead, Emirates NBD's voting power would be limited to 26% of RBL's total voting rights. Emirates NBD has been granted relief from the “single mode of presence” condition until its India branches are merged into RBL or for up to one year, whichever is earlier. The RBI's letter is valid for one year and is conditional on the government of India clearance for investment beyond 49% under the approval route, along with compliance with relevant provisions. Other regulatory permissions and standar Show less Read more
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