Mumbai: Reserve Bank of India (RBI) allows IDFC to come out as the first IDFC bank promoter.
In the submission of regulations conducted at BSE, the IDFC said that the RBI on July 20 clarified that “after the expiration of the 5-year period, IDFC Limited could come out as the IdFc First Bank promoter Limited.” Thus, the company can now come out as the first IDFC bank promoter, because the five-year period has ended.
IDFC bank was created by the IdFC infrastructure business demerger to the IDFC Bank in 2015.
“After the locking period, the RBI has enabled IDFC to attract as the first bank promoter of IDFC.
The above clarification can potentially lead to the reverse merger, which will be beneficial for limited shareholders IDFC by increasing the value of shareholders, “said Sonam Chandwani, managing partners in KS Law Associates.
“Also, while the advice of the internal working group has not been implemented, the rules are clear in terms of the parent company only stops if it does not have other organizations in its folds, alternative road paving to the department for companies such as IDFC.”