New Delhi, Mar 28 (PTI) Markets regulator Sebi today exempted the government from making open offers for the shareholders of Oriental Bank of Commerce, Corporation Bank and Andhra Bank following capital infusion.
The Securities and Exchange Board of India (Sebi) has already granted similar exemption to the government with regard to other state-owned lenders like Punjab National Bank, Canara Bank, Syndicate Bank, Vijaya Bank, Bank of Baroda, Union Bank of India, Dena Bank, IDBI Bank and Bank of India.
Following capital infusion in these listed public sector banks, the government’s stake in them would rise.
Under Sebi norms, an entity whose shareholding in a listed company goes beyond a particular threshold has to make an open offer.
Sebi has given exemption from open offer requirements with respect to Oriental Bank of Commerce, Corporation Bank and Andhra Bank through three separate but similarly-worded orders.
According to the orders, there would be no change in control of the banks pursuant to the proposed acquisition of additional shares by the government.
“Further, there will be no change in the number of equity shares held in the target company, by the public shareholders, pursuant to the proposed transactions,” Sebi said in the order regarding Oriental Bank of Commerce.
Following the capital infusion, the government’s stake would rise by 18.85 per cent in Oriental Bank of Commerce, 9.11 per cent in Corporation Bank and 8.22 per cent in Andhra Bank.
In February, the three lenders had filed separate applications on behalf of Indian government seeking exemption from the applicability of Regulation 3(2) of the SAST (Substantial Acquisition of Shares and Takeovers) Regulations.
Regulation 3(2) requires an acquirer to make a public announcement of an open offer for acquiring shares in case the existing stake goes beyond a certain threshold.
In January this year, the government had proposed infusion to the tune of Rs 3,571 crore in Oriental Bank of Commerce, Rs 2,187 crore in Corporation Bank and Rs 1,890 crore in Andhra Bank.
This is published unedited from the PTI feed.