The RBI has approved Mirae Asset Mutual Fund to acquire an aggregate holding of up to 9.5% in Equitas Small Finance Bank. The approval is valid for one year and is subject to compliance with banking and securities regulations.
By Gareema Bangad
Equitas Small Finance Bank has received intimation that the Reserve Bank of India (RBI) has approved Mirae Asset Mutual Fund to acquire up to 9.5% of the bank's paid-up share capital or voting rights.
In an exchange filing on Monday, June 1, Equitas Small Finance Bank said the approval was granted by the RBI to Mirae Asset Mutual Fund for acquiring an aggregate holding of up to 9.5% in the bank.
The approval is subject to compliance with provisions of the Banking Regulation Act, 1949, the RBI's Commercial Banks-Acquisition and Holding of Shares or Voting Rights Directions, 2025, regulations issued by the Securities and Exchange Board of India (SEBI), the Foreign Exchange Management Act (FEMA), and other applicable laws.
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The bank said the RBI approval will remain valid for a period of one year from the date of sanction. Any acquisition beyond the approved threshold or after the validity period would require fresh regulatory approvals, in accordance with applicable regulations.
Mutual funds and institutional investors are required to obtain prior approval from the RBI before crossing specified shareholding thresholds in private sector banks. The approval enables Mirae Asset Mutual Fund to increase its stake in Equitas Small Finance Bank, subject to market purchases and regulatory compliance.
Shares of Equitas Small Finance Bank closed 2.34% lower at ₹68.57 on Monday. The stock has gained about 8% over the last six months.
(Edited by : Prashant )