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RBI rejects proposal of Muthoot Finance to acquire IDBI Bank's mutual fund business

25 Nov 2020 Evaluate

Reserve Bank of India (RBI) has turned down the proposal of Muthoot Finance to acquire IDBI Bank's mutual fund business, as sponsoring a mutual fund is not in consonance with the activity of an operating NBFC. Share purchase agreement with regard to sale of IDBI Mutual Fund to Muthoot Finance was signed on November 22, 2019.

The agreement was entered into by and between Muthoot Finance, IDBI Bank, IDBI Capital Markets & Securities, IDBI Asset Management and IDBI MF Trustee Company for acquisition by Muthoot Finance of 100% equity shares of IDBI Asset Management held by IDBI Bank and its nominees and IDBI Capital Markets & Securities, and 100 % equity shares of IDBI MF Trustee Company held by IDBI Bank and its nominees.

Muthoot Finance is a non-banking financial company (NBFC), which is engaged in providing loan (financing) against collateral of gold jewelry. The company offers gold loans, foreign inward money transfer services, foreign exchange services, insurance broking etc.

Muthoot Finance Share Price

3609.40 77.35 (2.19%)
21-Apr-2026 16:59 View Price Chart
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