RBI has rejected Muthoot Finance's proposal to acquire IDBI AMC.
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).”
In November 2019, Muthoot Finance had signed a share purchase agreement to acquire 100% equity shares of IDBI AMC and IDBI MF Trustee Company for Rs 215 crore.
This acquisition was to be the vehicle for Muthoot’s entry in the MF industry.
