BackMuthoot’s bid to buy IDBI MF rejected
The activity of sponsoring a mutual fund or owning an asset management company is not in consonance with the activity of an operating NBFC, the RBI said
PremiumMUMBAI : The Reserve Bank of India (RBI) has not cleared a proposal by Muthoot Finance Ltd to buy IDBI Asset Management Ltd and IDBI MF Trustee Co. Ltd from IDBI Bank Ltd and IDBI Capital Markets and Securities Ltd, the non-bank financier said on Tuesday.
“The activity of sponsoring a mutual fund or owning an asset management company is not in consonance with the activity of an operating NBFC (non-banking financial company)", the central bank has conveyed to Muthoot Finance.
“Consequently, we have informed the Securities and Exchange Board of India (Sebi) vide our letter dated 23 November 2020 that Muthoot Finance Ltd is unable to proceed with the proposed transaction," Muthoot Finance said in a regulatory filing.
As of 31 March, IDBI Bank owned 66.67% stake in IDBI Asset Management, also referred to as IDBI Mutual Fund, with IDBI Capital Markets and Securities holding the remaining 33.33%.
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