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RBI said that EHL should divest its shareholding in its subsidiary Equitas Technologies P Ltd prior to the merger while the bank should bring Equitas Development Initiatives Trust and Equitas Healthcare Foundation under its ambit.

The regulator also said that investors which will be acquiring or holding 5% or more shareholding in the bank after merger need prior regulatory approval within one month from now.

However, their voting rights in the merged entity will be restricted to below 5% of total voting rights till RBI deems them to be “fit and proper”.

“We would like to inform that RBI vide its letter dated May 6 has conveyed its ‘no-objection’ to our proposal for voluntary amalgamation of EHL with ESFBL,” the bank announced in a filing to stock exchanges.

To be sure, the amalgamation scheme has to be approved by the majority of shareholders and creditors of both the entities.

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