Among other things, the banking regulator is awaiting the feedback from Enforcement Directorate and income tax department on Indiabulls promoters. “Indiabulls Group officials have informally told this to RBI. According to Securities Exchange Board of India (Sebi) rules, a combined promoters’ holding of less than 10% will fulfil the conditions of ‘depromoterisation’ in the amalgamated entity. The PCA norms kick in once a bank’s total capital, tier I capital (i.e, equity and free reserves) and non-performing asssets beach certain levels. However, there is another view that if the merger was imminent then the regulator would not have imposed the PCA on LVB.

Source: Economic Times September 30, 2019 02:03 UTC