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The Reserve Bank today said new bank promoters can hold only up to 49% in the proposed non-operative financial holding company (NOFHC) under any format and that individuals cannot form a group to set up the bank holding company.
It also said that separate guidelines pertaining to the NOHFCs will be issued shortly since they will be governed by a separate set of directions.
"If any individual belonging to the promoter group chooses to become a promoter of the NOFHC, he along with his relatives and along with entities in which he and/or his relatives hold not less than 50% of the voting equity shares can hold voting equity shares not exceeding 10% of the total voting equity shares of the NOFHC.
"Independent individuals forming a group cannot satisfy the above criteria laid down for holding the NOFHC. Additionally, such newly-formed promoter group would not be able to meet one of the 'fit and proper' criteria, which requires promoters to have a successful track record of running their business for at least 10 years," RBI said in its elaborate clarifications issued today.
"Under all circumstances at least 51% of the voting equity shares of the NOFHC shall be held by companies in the promoter group, in which public shareholding is not less than 51 percent," it further said, adding non-voting capital will not be reckoned for the purpose of calculation of promoter shareholding in the NOFHC/bank."
Incidentally, out of the 443 questions the RBI had received from 39 entities, as many as 343 were on the structure and capital holding of the proposed NOHFCs.
It further said that at least 51% of the voting equity shares of the NOFHC shall be held by companies in the promoter group, in which the public hold not less than 51 percent of the voting equity of such companies.
"Essentially, the intention is that existing groups should set up banks and not groups set up for this purpose. However, individuals belonging to the promoter group can participate in the voting equity shares of the NOFHC.. But they together cannot hold more than 49% of the voting equity shares of the NOFHC," RBI said.
Clarifying on the 51% public shareholding in the NOHFC, RBI said 'public shareholding' implies that no person along with his relatives and entities in which he and/or his relatives hold not less than 50% of the voting equity shares, by virtue of his shareholding or otherwise, exercises 'significant influence' or 'control' over the NOHFC, but not necessary that this firm must be listed.
Further it said 51% shareholdings only apply for entities/groups in the private sector that are 'owned and controlled by residents'.
