RBI today said asset reconstruction companies (ARCs) will have to take its approval for change in shareholding pattern beyond 10 per cent to safeguard interest of investors.
"One of the terms and conditions stipulated to the SC/RCs, while granting them the Certificate of Registration, states that prior approval of Reserve Bank will have to be taken by the SC/RCs for any change in their shareholding pattern," RBI said in a notification.
In order to smoothen the functioning of SC/RC companies, it has been decided that, henceforth only the following changes in the share holding pattern of the such companies will require Reserve Bank's prior approval if any transfer of shares by which the transferee becomes a sponsor.
If some one exiting from the company and ceases to be a sponsor then also it has to be informed to the RBI.
The aggregate transfer should be 10 per cent or more of the total paid up share capital by a sponsor during the period of five years commencing from the date of certificate of registration, it said.
All other terms and conditions as stipulated will continue to apply.
Following changes have been made to safeguard interest of investors or in any manner prejudicial to the interest of such companies, it said.
