1 June, 2016
The Reserve Bank of India (“RBI”) has fixed ownership limits for all shareholders in private sector banks in India based on categorization of the shareholders under two broad categories viz. (i) natural persons (individuals) and (ii) legal persons (entities/institutions). Further, non-financial and financial institutions, and among financial institutions, diversified and non-diversified financial institutions will have separate limits for shareholding as under:
|
Category of shareholder |
Promoter group |
All shareholders in the long run |
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|
Sub-category of shareholder |
All categories of Promoter / Promoter group |
#Natural person |
Legal persons |
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|
#Non-financial institution / entities |
Financial institution |
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|
Non-regulated or non-diversified and non-listed |
Regulated, well diversified and listed / supranational institution / public sector undertaking / Government |
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|
Proposed shareholding cap |
As specified in the February 22, 2013 licensing regulations viz. 15% |
10% |
10% |
15% |
40% |
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For further information, please contact:
Seema Jhingan, Partner, Lex Counsel Law Offices
sjhingan@lexcounsel.in
