Decide on TMB share transfers by Feb-end, Bombay HC tells RBI

The Bombay High Court has given the Reserve Bank of India (RBI) till February-end next year to decide on the transfer of shares of Tamilnad Mercantile Bank Ltd (TMB).

The matter has been with RBI, which had issued a previous order, in 2009, on the issue. Till the decision is made, the HC said, TMB cannot call for any general meeting or take any major policy decision.

This means the bank’s 88th AGM, scheduled for next month, cannot be held till the RBI order. The meeting was seen as important, since major decisions such as a public offer and plans for expansion, were to be presented to shareholders for approval.

The HC order was on petitions filed by various parties recording the ownership of certain shares owned by Indian and foreign investors, and the RBI order of 2009.

The HC said it was disposing all these petitions with the order to RBI, for an “appropriate decision” by February 28. The petitioners in the case may make addition representations in this regard to RBI, the court said.