Currently, Equitas Holding Ltd and Equitas Small Finance Bank are listed on the stock exchange. Equitas Holdings owns an 82% stake in the bank.

“In accordance with paragraph 8 of the RBI Small Finance Banking Licensing Guidelines (“ SFB Licensing Guidelines ”) dated November 27, 2014, read with RBI clarifications to Request No. 101 on SFB Licensing Guidelines issued on January 1, 2015, a promoter of Small Finance La Banque (SFB) may exit or cease to be a promoter after the mandatory initial blocking period of five years (“Initial Promoter Lock-in”) depending on regulatory comfort and oversight of the RBI and SEBI regulations in this regard at that time. “the company said in a stock exchange document.

“In the case of Equitas Small Finance Bank Limited (“ the Bank ”), our subsidiary of which the Company is the promoter, said initial promoter foreclosure for the Company expires on September 4, 2021. Therefore, the Bank had asked RBI whether a Plan to merge the Company with the Bank, resulting in the exit of the promoter, may be submitted to RBI for approval, before the expiration of said five years, to take effect after the expiration of the promoter’s initial foreclosure ”, he added .

According to the record, RBI empties its July 9 communication to the bank that allowed it to ask the central bank to seek approval of a merger plan.

“Accordingly, we would take steps to finalize the merger scheme, submit it to the boards of directors of the company and the bank for approval, and take further steps thereafter in accordance with applicable regulations and guidelines,” said declared the company.