RBL Bank gets RBI's approval for Quant Money Managers Ltd acquisition

RBL Bank has received approval from the RBI for Quant Money Managers Ltd's plans to buy up to 9.98 per cent of RBL Bank Limited's paid-up share capital or voting rights through various quant Mutual Fund schemes.

As of May 10, 2024, Quant Mutual Fund's various schemes held 4.68 per cent of RBL Bank's equity share capital.

This acquisition must be completed within a year's time, i.e., by May 12, 2025, according to the statement.

The release also states that, Quant Money Managers Ltd.'s total stake in RBL Bank should not exceed 9.98 per cent of the bank's paid-up share capital or voting rights at any time. If its stake falls below 5 per cent, it will need prior clearance from the central bank to increase it to 5 per cent or higher.

RBI says that this is subjected to the condition that ensures that this acquisition is compliant with the Banking Regulation Act, 1949; The RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies (dated January 16, 2023); the Foreign Exchange Management Act, 1999; regulations issued by the Securities and Exchange Board of India (SEBI); and their applicable statutes, regulations, and guidelines.