Equitas dips 10% as RBI denies listing extension for its small finance bank

As per the rules of the RBI, small finance banks, having a capital base of over Rs 500 crore, have to list within three years from commencement of operations.

Shares of Equitas Holding crashed 10 per cent to trade at Rs 104.4 apiece on the BSE on Monday, after Reserve Bank of India (RBI) denied to extend deadline for its subsidiary Equitas Small Finance Bank (ESFB), to get listed at the bourses. 

"As the regulator did not consent to this (extension of the deaadline) proposal, the Boards of EHL and ESFB had approved a Scheme of Arrangement wherein, ESFB would capitalize its free reserves and issue shares of ESFB to the shareholders of EHL without cash consideration, in proportion to their holding in EHL. This Scheme of Arrangement was