Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: TDS :: ACCOUNTING STANDARDS :: VAT Audit :: articles on VAT and GST in India :: VAT RATES :: Central Excise rule to resale the machines to a new company :: form 3cd :: empanelment :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: cpt :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« Latest Circulars »
  RBI announces auction of a 15-days Government of India Cash Management Bill
 Auction of Government of India Dated Securities April 24, 2017
 RBI- Compliance with Ghosh Committee Recommendations
 RBI announces auction of a 15-days Government of India Cash Management Bill
  Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 - Amended
 Minutes of the Monetary Policy Committee Meeting April 5-6, 2017
 Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 - Amended
 RBI-Professor Willem H. Buiter, Global Chief Economist, Citigroup, delivers the Sixteenth C.D. Deshmukh Memorial Lecture titled ‘The Good and the Bad Fiscal Theory of the Price Level’
 RBI launches Quarterly Order Books, Inventories and Capacity Utilisation Survey: January – March 2017 (Round 37)
 RBI-Exim Bank's Government of India supported Line of Credit of USD 31.29 million to the Government of the Republic of Nicaragua
 RBI-Grant of ‘Certificate of Registration’ – For carrying on the business of credit information – Transunion CIBIL Limited

Master Direction - Issue and Pricing of shares by Private Sector Banks, Directions, 2016
April, 22nd 2016

RBI/DBR/2015-16/21
Master Direction DBR.PSBD.No.95/16.13.100/2015-16

April 21, 2016

Master Direction - Issue and Pricing of shares by Private Sector Banks, Directions, 2016

In exercise of the powers conferred by 35 A of the Banking Regulation Act, 1949 the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified.

CHAPTER – I
PRELIMINARY

1. Short Title and Commencement

  1. These Directions shall be called the Reserve Bank of India (Issue and Pricing of Shares by Private Sector Banks) Directions, 2016.

  2. These directions shall come into effect on the day they are placed on the official website of the Reserve Bank of India (RBI).

2. Applicability

The provisions of these Directions shall apply to all private sector banks licensed by RBI to operate in India.

3. Definitions

(i) In these Directions, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below –

“Private Sector Banks” means banks licensed to operate in India under Banking Regulation Act, 1949, other than Urban Co-operative Banks, Foreign Banks and banks licensed under specific Statutes.

(ii) All other expressions unless defined herein shall have the same meaning as have been assigned to them under the Banking Regulation Act, 1949 or the Reserve Bank of India Act, 1934 or SEBI Guidelines or Companies Act and rules made thereunder or as used in commercial parlance, as the case may be.

CHAPTER – II
TYPES OF ISSUES

4. Banks normally issue shares by way of:

i) Public Issues

  1. Initial Public Offer

  2. Further Public Offer

ii) Private Placement

  1. Preferential Issue

  2. Qualified Institutional Placement

iii) Rights Issue

iv) Bonus Issues

CHAPTER III
ISSUE AND PRICING OF SHARES - GENERAL PERMISSION

5 A private sector bank, both listed and unlisted, has general permission for issue of shares through all the routes mentioned in Section 4 above subject to the following conditions:

  1. The issue of shares shall be in compliance with the provisions of Foreign Exchange Management Act, 1999 (FEMA) and extant Foreign Investment Policy of Government of India for Private Sector Banks.

  2. The issue of shares shall be in compliance with the extant SEBI guidelines, provisions of Companies Act and rules made thereunder.

  3. The issue of shares through any of the routes shall have the approval from the bank’s Board / AGM, as the case may be in compliance with the Companies Act 2013 /SEBI guidelines.

  4. Pricing of shares through any of the routes by listed banks shall be as per SEBI formula, while for unlisted banks the pricing shall be as per Companies Act and rules made thereunder.

  5. Allotment of shares to the investors under any of the routes shall be subject to compliance with the extant RBI Master Directions dated November 19, 2015 on Prior approval for acquisition of shares or voting rights in private sector banks which requires investors to obtain specific prior approval of RBI if the proposed acquisition results in aggregate holding of 5 per cent or more of the paid-up capital of the bank.

  6. The specific regulatory limits permitted to the shareholders or the promoters / promoter group shall not be breached on account of fresh subscription, own entitlement, renouncement of rights or otherwise.

  7. On completion of allotment process subject to compliance with the stipulation as at para 5 (v) above, if applicable, complete details of the issue shall be reported to RBI viz. date of issue, details of the type of issue, issue size, details of pricing, number and names of allottees, post allotment shareholding position, etc, along with a copy of Board / AGM Resolution and prospectus / offer document in the format given in the schedule to these Directions.

CHAPTER – IV
REPEAL AND OTHER PROVISIONS

6. With the issue of these Directions, the instructions / guidelines contained in the following circulars issued by the Reserve Bank stand repealed:

  1. DBOD.No.BC.76/16.13.100/94 dated June 17, 1994.
  2. DBOD.No.PSBS.BC.72/16.13.100/98-99 dated July 10, 1998.
  3. DBOD.No.PSBD.BC.99/16.13.100/2004-05 dated June 25, 2005.
  4. DBOD.No.PSBD.BC.92/16.13.100/2009-2010 dated April 20, 2010.

7. All approvals given under the above circulars shall be deemed as given under these Directions.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions