Equitas Small Finance Bank on Monday said 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 a stock exchange filing, the bank said the central bank has approved for Mirae Asset Mutual Fund to increase its aggregate shareholding in Equitas Small Finance Bank up to the prescribed limit.
The approval is subject to compliance with the provisions of the Banking Regulation Act, 1949, the RBI's Commercial Banks-Acquisition and Holding of Shares or Voting Rights Directions, 2025, regulations framed by the Securities and Exchange Board of India (SEBI), the Foreign Exchange Management Act (FEMA), and other applicable laws.
According to the bank, the RBI's approval will remain valid for one year from the date of sanction. Any acquisition beyond the approved threshold or after the validity period would require fresh regulatory clearance.
The approval allows Mirae Asset Mutual Fund to increase its holding in the private sector lender through market purchases, subject to regulatory requirements.
Under banking regulations, mutual funds and institutional investors must obtain prior RBI approval before crossing specified shareholding thresholds in private sector banks.
Shares of Equitas Small Finance Bank ended Monday's session at Rs 68.57, down 2.34%. The stock has gained around 8% over the past six months.