Master Direction – Amalgamation of Private Sector Banks, Directions, 2016
This Master Direction outlines the guidelines for the amalgamation of private sector banks, non-banking financial companies (NBFCs), and banking companies.
The direction applies to all private sector banks, NBFCs, and banking companies registered with the Reserve Bank of India (RBI).
The scope of the direction includes the amalgamation of two banking companies, an NBFC with a banking company, and a banking company with an NBFC.
The direction outlines the procedures for application, approval, and entitlement of dissenting shareholders in each type of amalgamation.
It also specifies the norms for buying and selling of shares by promoters before, during, and after the discussion period.
Key Chapters:
CHAPTER II: Approval by Board of Directors
CHAPTER III: Amalgamation between two banking companies
CHAPTER IV: Amalgamation of an NBFC with a banking company
CHAPTER V: Amalgamation of a banking company with an NBFC
CHAPTER VI: Norms for buying/selling of shares by promoters
CHAPTER VII: Repeal and other provisions
The direction also includes a schedule outlining the information and documents required for amalgamation.
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Download: Master Direction – Amalgamation of Private Sector Banks, Directions, 2016