JM Fin's Rs 22-cr warrant issue to Vikram Pandit gets FIPB nod

The proposal was approved by FIPB, headed by Economic Affairs Secretary Arvind Mayaram

The government on Thursday approved JM Financial issuing warrants worth about Rs 22 crore to well known banker Vikram Pandit, who has been roped in by the group for its proposed banking venture. The proposal was approved by the Foreign Investment Promotion Board (FIPB), headed by Economic Affairs Secretary Arvind Mayaram.

Sources said JM Financial's proposal was to issue warrants worth Rs 22.19 crore to Pandit on a preferential basis.

The allotment of these securities to Pandit, who earlier headed global financial services major Citigroup, is part of Nimesh Kampani-led JM Financial's proposed banking venture plan. JM Financial is one among the banking aspirants of the country awaiting the Reserve Bank of India's approval. Pandit, who had an unceremonious exit from Citigroup late last year, also plans to make investments in JM Financial's non-banking financial company. He will also set up a $100-million distressed asset fund with JM Financial.

According to JM Financial's announcement in May this year, it would also nominate Pandit as the non-executive chairman of its proposed banking venture.

Meanwhile, the FIPB also cleared pharma sector investment proposals, including that of Castleton Investment and Intas Pharmaceuticals. However, decision on the proposal of Karnataka-based Provimi Animal Nutrition India was deferred.