The Foreign Investment Promotion Board (FIPB) has rejected PNB Paribas’ proposal to buy stock trading firm Sharekhan from the brokerage’s private equity owners. The French bank had concluded a deal in July 2015 with Sharekhan’s existing private equity backers including The Rohatyn Group, Samara Capital and Baring PE Asia for the acquisition. The Rohatyn Group, which became a large shareholder in Sharekhan after it acquired Citigroup Venture Capital International (CVCI), owns a little over 40% stake. Samara Capital holds around 30-35%, after factoring in convertibles like preference shares and debentures. The remaining stake is with Baring PE Asia, IDFC and top executives of the brokerage.
