Master Direction – Reserve Bank of India (Acquisition and Holding of Shares or Voting Rights in Banking Companies) Directions, 2023
The Reserve Bank of India (RBI) has issued Master Directions for the acquisition and holding of shares or voting rights in banking companies.
Objective: To provide a framework for the acquisition and holding of shares or voting rights in banking companies.
Key Provisions
Prior Approval for Acquisition: The RBI has outlined the procedure for prior approval for the acquisition of shares or voting rights in banking companies.
Continuous Monitoring Arrangements: The directions emphasize the importance of due diligence, detecting violations of Section 12B(1) of the Banking Regulation Act, 1949, and maintaining diversified shareholding in banking companies.
Reporting Requirements: The directions specify the reporting requirements for banking companies and their shareholders.
Repeal and Other Provisions
The Master Directions repeal and replace the existing directions on the subject and provide for other provisions related to the acquisition and holding of shares or voting rights in banking companies.
The directions are effective from the date of issuance and are applicable to all banking companies and their shareholders.
Chat with the Master Direction: