RBI allows IDFC to exit as promoter of IDFC First Bank
The Reserve Bank of India allowed IDFC to exit IDFC First Bank. In a regulatory filing to BSE, IDFC said that the RBI clarified on July 20 that “after the end of the lock-in period of 5 years, IDFC Ltd. may exit as the promoter of ‘IDFC First Bank Ltd.’ Is.”
Accordingly, the company can now exit as the promoter of IDFC First Bank, as the lock-in period of five years is over.
IDFC Bank was created in 2015 by severing the infrastructure lending business of IDFC to IDFC Bank.
Sonam said, “Post the lock-in period, RBI has permitted the withdrawal of IDFC as promoter of IDFC First Bank. The above clarification could potentially lead to a reverse merger, by increasing shareholder value. IDFC Limited will be beneficial to the shareholders.” Chandwani, Managing Partner, KS Legal & Associates.
“Moreover, while the suggestions of the internal working group are yet to be implemented, the rules are clear in terms of leaving the holding company, if it does not have any other organisation, paving an alternative path for departure for corporations such as IDFC. does.”
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