BBN Bureau
MUMBAI/July 05-2022: HDFC Ltd and HDFC Bank, have received ‘No Objection’ from the Reserve Bank of India (RBI) in relation to the proposed composite scheme of amalgamation between the two.
While HDFC Ltd is the largest home finance company in the country, HDFC Bank is the largest private sector bank.
The scheme involves the amalgamation of HDFC Investments Ltd and HDFC Holdings Ltd, wholly-owned subsidiaries of Housing Development Finance Corporation Ltd (HDFC Ltd), with and into HDFC Ltd, and thereafter HDFC Ltd with and into HDFC Bank Ltd.
On April 4, 2022 RBI was informed about the decision taken by the board of directors of HDFC Ltd approving the proposed Scheme under Sections 230 to 232 of the Companies Act, 2013, and Amalgamations) Rules, 2016 and other rules and regulations framed thereunder, subject to receipt of various statutory and regulatory approvals.
Earlier, the entities had received Observation Letter with ‘no adverse observations’ from BSE Ltd and ‘no objection’ from the National Stock Exchange (NSE) in relation to the proposed composite scheme of amalgamation.
The Scheme remains subject to various statutory and regulatory approvals inter alia including approvals from Competition Commission of India (CCI), the National Company Law Tribunal (NCLT) and the respective shareholders and creditors of the companies involved in the Scheme, as may be required.
