Bandhan Bank gets SEBI exemption for its one-year downtime during promoter

Shares of Bandhan Bank were then listed on March 27.

A private sector lender based in Kolkata received an exemption from the SEBI regarding the regulatory requirement of a one year lock-in period on the promoter's actions. According to the SEBI rules, the promoter shares must necessarily be immobilized for a period of one year after their registration. The Bandhan Bank had published its public offer in March of this year. The shares were then listed on the stock market on March 27.

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"Further to our notification dated September 28, 2018, it is hereby informed that the Bank has received an exemption from the Securities and Exchange Board of India with respect to (i) the one-year lock-in on shares held by the promoter; and (ii) a one-year eligibility requirement from the IPO, "said Bandhan Bank in a stock exchange. Earlier, the RBI banned Bandhan Bank from opening new branches without authorization and also ordered the private sector lender to freeze the CEO's salary, Chandra Shekhar Ghosh, for failing to comply with the rules governing shareholding.

"RBI told us that since the bank was unable to reduce the capital of the non-operating financial holding company to 40%, as stipulated in the condition of license, the general authorization to open new branches was withdrawn and the bank can open the RBI's approval and the compensation of the general manager and the bank's general manager are blocked until the current level, until new order, "said the bank about BSE. Shares of Bandhan Bank closed at Rs 464.85 on NSE this afternoon.

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