The Reserve Bank of India has approved Mirae Asset Mutual Fund to acquire up to 9.5% of Equitas Small Finance Bank's paid-up share capital or voting rights. According to an exchange filing on Monday, June 1, the approval was granted by the RBI for acquiring an aggregate holding of up to 9.5% in the bank. The RBI approval will remain valid for a period of one year from the date of sanction, with any acquisition beyond the approved threshold or after the validity period requiring fresh regulatory approvals.
The approval is subject to compliance with provisions of the Banking Regulation Act, 1949, the RBI's Commercial Banks-Acquisition and Holding of Shares or Voting Rights Directions, 2025, regulations issued by the Securities and Exchange Board of India (SEBI), the Foreign Exchange Management Act (FEMA), and other applicable laws. As reported by CNBC TV18, mutual funds and institutional investors are required to obtain prior approval from the RBI before crossing specified shareholding thresholds in private sector banks. The approval enables Mirae Asset Mutual Fund to increase its stake in Equitas Small Finance Bank, subject to market purchases and regulatory compliance.
Shares of Equitas Small Finance Bank closed 2.34% lower at ₹68.57 on Monday. According to CNBC TV18, the stock has gained about 8% over the last six months, indicating positive long-term performance despite the recent decline. The market reaction reflects investor sentiment following the regulatory approval announcement.
