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Government okays Banking Laws Amendment Bill
The government has approved the Banking Laws Amendment Bill that seeks to align the
voting rights in banks in proportion to the equity holding. Currently, the voting rights of a
shareholder are limited to 1% in state-owned banks and 10% in private banks irrespective
of their equity holding. Post the approval in the parliament, the bill will align the ability to
exert influence in line with the ownership right, which will be positive for the entire banking
sector, especially private sector banks. To prevent an entity or an individual from cornering
a chunk of shares in a bank, the bill also restricts an individual or entity from holding more
than 5% stake in a bank without receiving approval from the RBI.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Government okays Banking Laws Amendment Bill
The government has approved the Banking Laws Amendment Bill that seeks to align the
voting rights in banks in proportion to the equity holding. Currently, the voting rights of a
shareholder are limited to 1% in state-owned banks and 10% in private banks irrespective
of their equity holding. Post the approval in the parliament, the bill will align the ability to
exert influence in line with the ownership right, which will be positive for the entire banking
sector, especially private sector banks. To prevent an entity or an individual from cornering
a chunk of shares in a bank, the bill also restricts an individual or entity from holding more
than 5% stake in a bank without receiving approval from the RBI.
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