Sebi has agreed to settle an outstanding case against RBL Bank for alleged violation of disclosure norms with regard to issuance of shares to select investors for over Rs 600 crore. This will facilitate the bank to proceed with its proposed IPO. The settlement involves payment of Rs 47.6 lakh towards ‘monetary settlement charges’, as also a commitment by the bank that it would give an exit opportunity in its IPO to the investors to whom shares were issued earlier in the rights issues. The exit offer would need to ensure that the shareholding of an individual investor does not exceed 5% as per RBI guidelines. The offer price need to be a higher amount of the allotment price plus interest at the rate of 15%, or a fair value estimated by RBL of Rs 90 each. The shareholders would be given 21 days to decide on whether to sell their shares or continue to remain invested. Sebi said it took into account the factors that the alleged violation was disclosed voluntarily by the bank and there was no outstanding regulatory concern from the banking regulator RBI.
