RBI eases rules for DIIs to buy bank shares

Under the earlier regime, acquiring a “major shareholding”—defined as 5% or more of a bank’s paid-up share capital, demanded prior clearance from RBI.

MUMBAI: RBI has eased rules for large DIIS acquiring shares in banks, allowing eligible mutual funds, pension funds and insurance firms to obtain one-time approval to raise their aggregate holding to 10% without seeking fresh clearance every time their stake crosses the 5% threshold. Under the earlier regime, acquiring a “major shareholding”—defined as 5% or more of a bank’s paid-up share capital, demanded prior clearance from RBI.