Sebi has exempted the government from the open offer obligation in the case of Allahabad Bank. As part of project Indradhanush, the government had infused around Rs 690 crore in the bank, which increased its shareholding by 5.83%. An increase of 5% in shareholding of a promoter in a single financial year triggers an open offer to buy additional 26%. The government requested Sebi for an exemption and the latter has granted the request. Sebi said in its order that capital adequacy of the bank is a requirement to protect its small customers as well as the public shareholders who have invested in its equity. Further, there would be no change in the management control in the target company.
