A share purchase agreement dated November 22, 2019 was entered into between Muthoot Finance, IDBI Bank, IDBI Capital Markets & Securities, IDBI Asset Management and IDBI MF Trustee Company.
Muthoot Finance said on Tuesday that the regulator RBI has rejected its proposal to acquire IDBI Asset Management on the grounds that “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 NBFC said in a regulatory filing that a share purchase agreement dated November 22, 2019 was entered into between Muthoot Finance, IDBI Bank, IDBI Capital Markets & Securities, IDBI Asset Management and IDBI MF Trustee Company in relation to the proposal for acquisition of 100% equity shares subject to receipt of necessary regulatory approvals from Securities and Exchange Board of India and other relevant regulators.
The Kerala-based lender added that it has informed SEBI that it is unable to proceed with the proposed transaction.
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