RBL Bank may have its IPO in the third week of August, according to news reports. The bank has received clearances from Sebi on the issues relating to its shareholding that were flagged off by the regulator last year. The regulator had withheld approval as RBL had in the past issued securities to more subscribers than permitted under the Companies Act, 2013. As per the 2013 Act, if there are more than 49 investors and up to 200 investors, a company has the option of refunding the investors with interest and no penal action would be taken. However, even after the amendment, RBL’s past issuances continued to be in violation of the norms as the bank had issued shares to more than 200 investors.
