Muthoot Finance said on Tuesday that the regulator RBI has rejected its proposal to acquire IDBI Asset Management on the grounds that “the activity of sponsoring a mutual fund or owning an asset management company is not in consonance with the activity of an operating NBFC”.
The NBFC said in a regulatory filing that a share purchase agreement dated November 22, 2019 was entered into between Muthoot Finance, IDBI Bank, IDBI Capital Markets & Securities, IDBI Asset Management and IDBI MF Trustee Company in relation to the proposal for acquisition of 100% equity shares subject to receipt of necessary regulatory approvals from Securities and Exchange Board of India and other relevant regulators.
The Kerala-based lender added that it has informed SEBI that it is unable to proceed with the proposed transaction.
