The Reserve Bank of India (RBI) on Friday refused to extend the listing deadline for Equitas Small Finance Bank (SFB) while barring it from opening new branches till further orders.
The regulator has also frozen the pay of Managing Director and Chief Executive Officer Vasudevan P N as the bank violated listing norms.
The RBI’s action comes after Equitas Financial Holdings — the SFB’s holding company — requested an extension of the listing deadline.
“Your request for extension of timeline for listing of shares of Equitas SFB cannot be acceded to,” the RBI said in a letter.
The RBI rules mandate that an SFB must be listed within three years of reaching Rs 500-crore net worth.
Further restrictions may be imposed if the bank fails to make “satisfactory progress towards listing of its share”, said the RBI.
The SFB began operations on September 5, 2016.