IDBI Bank had to sell its MF arm after being acquired by state-owned insurance behemoth Life Insurance Corporation since LIC already had an AMC. According to a regulatory filing by IDBI Bank on Tuesday, a share purchase agreement with regard to sale of IDBI Mutual Fund to Muthoot Finance was signed on November 22, 2019. Shri M. G. George Muthoot has been honoured with many prestigious awards. RBI imposition of 10 and 5 Lakh fine on Muthoot Finance and Manappuram respectively comes after flagrant and continuous violation of RBI guidelines in following protocol This was subject to receipt of necessary regulatory approvals from the Securities and Exchange Board of India (Sebi) and other regulators. . Access exclusive content of the Hindu Businessline across desktops, tablet and mobile device. The RBI has turned down the proposal of Muthoot Finance to acquire IDBI Bank's mutual fund business, saying sponsoring a mutual fund is not in consonance with the activity of an operating NBFC. RBI turns down proposal of Muthoot Finance to acquire IDBI Bank's mutual fund business. Total income stood at Rs.1062 crs and at Rs.2154crs respectively. The Reserve Bank of India (RBI) has rejected the proposed acquisition of IDBI Mutual Fund by Muthoot Finance. Muthoot Finance’s request for a no objection certificate to acquire IDBI Capital Markets & Securities, IDBI Trustee and IDBI Asset Management has not been approved by RBI 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. Despite RBI rejecting the deal, Muthoot Finance’s shares were marginally up 0.61% on the BSE on Wednesday at Rs 1145 at of 10 20am. Industrial Bureau:- The Reserve Bank of India has declined the offer of non-bank lender Muthoot Finance to acquire IDBI Asset Management Company on the basis of synergy – or its conspicuous absence. In both the cases, RBI said its action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Increase in LTV has further put banks in a sweet spot. Muthoot Finance has said Reserve Bank of India didn't accede to its proposed acquisition of IDBI Mutual Fund. Covid-19 has triggered a consumer shift towards branded products as ... Big Story | Behavioural biases to be wary of in a bull market. Muthoot Finance informed the exchanges that its request for a no-objection certificate was not acceded to by the RBI on the ground that, “The activity of sponsoring a mutual fund or owning an AMC was not in consonance with the activity of operating a non-banking financial company (NBFC).” You can also download our Android App or IOS App. Experience cleaner site with zero ads and faster load times. TNN Mumbai: Kerala-headquartered NBFC major Muthoot Finance on Tuesday said that the RBI has declined permission for its plans to acquire IDBI Mutual Fund. Muthoot Finance had proposed to purchase 100 equity shares of IDBI AMC and IDBI MF Trustee Company held by the sellers for a total consideration of Rs 215 crore. Copyright © 2020, THG PUBLISHING PVT LTD. 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The initial deal between IDBI Bank and some of its arms and Muthoot Finance was signed exactly a year ago, subject to … The regulator told the Gold Loan Company that the activity of sponsoring mutual funds or operating an asset management company is not commensurate […] Banks aggressively lending retail gold loans. The Reserve Bank of India (RBI) has imposed a penalty of ₹ 10 lakh on Muthoot Finance Ltd, Ernakulam, and ₹ 5 lakh on Manappuram Finance Ltd, … “After considering the company’s reply to the notice, oral submissions made during the personal hearings and examination of additional submissions made by it, RBI concluded that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty,” the statement said. The RBI said accepting such deposits is now punishable and if depositors give money, they would be doing so at their own risk. RBI''s targeted long-term ... for industry," said George Alexander Muthoot, MD, Muthoot Finance. Banks risk-averse towards unsecured loans. Photo Credit: Reuters. Also read: All you wanted to know about loan-to-value ratio. RBI has rejected Muthoot Finance's proposal to acquire IDBI AMC. Also read: Muthoot Finance posts 4% rise in Q2 net profit. Mumbai, Nov 20 (PTI) The Reserve Bank of India (RBI) has imposed a total fine of over Rs 5.78 crore on six entities, including PNB, Sodexo and PhonePe, for violating regulatory guidelines. 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The RBI has turned down the proposal of Muthoot Finance to acquire IDBI Bank's mutual fund business, saying sponsoring a mutual fund is not in consonance with the activity of an operating NBFC.According to a regulatory filing by IDBI Bank on The RBI has turned down the proposal of Muthoot Finance to acquire IDBI Bank's mutual fund business, saying sponsoring a mutual fund is not .. India TV 24/11/2020 09:50:52 PM Share: In a separate announcement on 19 November, RBI said it has imposed a penalty of INR10 lakh on Muthoot Finance Limited, Ernakulam and INR 5 lakh on Manappuram Finance … You have reached your weekly free article limit. The RBI said Muthoot Fincorp had been collecting deposits for Muthoot Estate Investments, a group company, via its branches, from which Muthoot Fincorp has now been barred. And it has every reason to smile. In addition to financing gold transactions, the company offers foreign exchange services, money transfers, wealth management services, travel and tourism services, and sells gold coins. (Photo: Mint) RBI rejects Muthoot Finance's proposal to buy IDBI MF 1 min read. (339 kb) Date : Nov 20, 2020 Reserve Bank of India imposes monetary penalty on (1) Sodexo SVC India Private Limited, (2) Muthoot Vehicle & Asset Finance Limited, (3) QwikCilver Solutions Private Limited, (4) Phonepe Private Limited, (5) Delhi Metro Rail Corporation Limited and (6) Punjab National Bank Muthoot Finance: The RBI has turned down the proposal of Muthoot Finance to acquire IDBI Bank's mutual fund business, saying sponsoring a mutual fund is not in consonance with the activity of an operating NBFC. Please Subscribe to get access to one of our early bird packs. All rights reserved. The RBI has turned down the proposal of Muthoot Finance Ltd. to acquire IDBI Bank's mutual fund business, saying sponsoring a mutual fund is not in consonance with the activity of an operating NBFC. In the case of Muthoot Finance, RBI said the penalty is for non-compliance with directions on maintenance of Loan to Value (LTV) ratio in gold loans and on obtaining copy of PAN (Permanent Account Number) card of the borrower while granting loans in excess of ₹5 lakh. Muthoot Finance informed the exchanges that its request for a no-objection certificate was not acceded to by the RBI on the ground that, “The activity of sponsoring a mutual fund or owning an AMC was not in consonance with the activity of operating a non-banking financial company (NBFC).” Amitabh Bachchan's 'nimbu mirchi' on 2021 post is exactly what's on our mind, 17 per cent of BMW bikes worldwide produced at TVS Chennai plant, Amazon Christmas sale 2020 begins: Offers on OnePlus 8T, Redmi Note 9 Pro, Opinion | Farmers’ agitation: Leftists agenda is to denigrate Modi, J&K govt ropes in filmmaker Imtiaz Ali to promote local art and culture, Coolie No 1 Song Mummy Kassam out: Varun Dhawan, Sara Ali Khan will leave you tapping your feet, Suresh Raina set to return to competitive cricket, shares photos from training session. The Reserve Bank of India (RBI) has imposed a penalty of ₹10 lakh on Muthoot Finance Ltd, Ernakulam, and ₹5 lakh on Manappuram Finance Ltd, Thrissur, for non-compliance with its directions. According to a regulatory filing by IDBI Bank Ltd. on Nov. 24, a share purchase agreement with regard to sale of IDBI Mutual Fund to Muthoot Finance was signed on Nov. 22, 2019. Also read: Manappuram Finance posts 10% rise in Q2 net profit. googletag.cmd.push(function () { googletag.display('div-gpt-ad-1494579592958-0'); }); Sukhbir Singh Badal accuses BJP of setting Hindus against Sikhs in Punjab, Pandian Stores fame Vj Chitra's husband arrested for allegedly abetting suicide, AUS vs IND | Virat is our captain right now, will think about captaincy once he leaves: Rahane, Horoscope Today, Solar Eclipse, Dec 14: Know effect of last 'surya grahan' on your zodiac sign, Nazar Na Lage! The Reserve Bank of India (RBI) on Thursday imposed penalties of Rs 10 lakh and Rs 5 lakh on Muthoot Finance and Manappuram Finance respectively, for norm violations. The central bank has penalised Muthoot Finance Limited for non-compliance with directions issued by RBI on maintenance of loan-to-value ratio in gold loans and on obtaining copy of PAN card … Depression rates tripled during Covid-19 pandemic: Study. Offer closes soon. "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 regulator told the gold-loan company. RBI rejects Muthoot Finance's plan to buy IDBI AMC. The RBI said accepting such deposits is now punishable and if … Avail Invitation Pricing Now Facebook, Twitter, Instagram, YouTube and Get diverse set of perspectives from our trusted experts on Portfolio, Banking, Economy, Environment and others. According to a regulatory filing by IDBI Bank on Tuesday, a share purchase agreement with regard to sale of IDBI Mutual Fund to Muthoot Finance was signed on November 22, 2019. George Alexander Muthoot, Managing Director, Muthoot Finance, talks about rejection of the proposal to acquire IDBI Mutual Fund, RBI’s working committee recommendations and gold loan demand among others during a candid chat with Swati Khandelwal, Zee Business. Image Source : FILE RBI imposes penalty on Muthoot Finance, Manappuram Finance The RBI on Thursday stated it has imposed a penalty of Rs 10 lakh on Muthoot Finance, Ernakulam, for non-compliance with instructions on keeping up mortgage to worth ratio in gold loans and on acquiring a duplicate of the PAN card of the […] RBI Rejects Muthoot Finances Proposal To Acquire IDBI MF Trending Now! Muthoot Finance has been accoladed as India's No.1 most trusted financial services brand, according to the Brand Trust Report of 2016, 2017, 2018, and 2019 consecutively. RBI has rejected Muthoot Finance's proposal to acquire IDBI AMC. We are also India’s largest gold financing company in terms of loan portfolio. Says that the well-run large NBFCs with an asset size of Rs 50,000 crore and above may convert into full-fledged banks. Presently, he is the National Executive Committee Member of FICCI and also Chairman of FICCI’s Kerala State Council. "As advised by Muthoot Finance, we (IDBI Bank) would like to inform that their request for a no objection certificate was not acceded to by Reserve Bank of India on the ground 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 filing said. The RBI on Thursday said it has imposed a penalty of Rs 10 lakh on Muthoot Finance, Ernakulam, for non-compliance with directions on maintaining loan to value ratio in gold loans and on obtaining copy of PAN card of the borrower while granting gold loans of over Rs 5 lakh. The RBI has turned down the proposal of Muthoot Finance to acquire IDBI Bank's mutual fund business, saying sponsoring a mutual fund is not in consonance with the activity of an operating NBFC.According to a regulatory filing by IDBI Bank on Board may consider applying for banking license after RBI guidelines are out: George Alexander Muthoot George Alexander Muthoot, Managing Director, Muthoot Finance, talks about rejection of the proposal to acquire IDBI Mutual Fund, RBI’s working committee recommendations and gold loan demand among others during a candid chat with Swati Khandelwal, Zee Business Mumbai, Nov 24 (IANS) The Reserve Bank of India (RBI) has rejected the proposed acqusition of IDBI Mutual Fund by Muthoot Finance. Burger loveA year after withdrawing it, McDonald’s India re-introduced the Chicken McGrill last month after a ... Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ... 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