Total income stood at Rs.1062 crs and at Rs.2154crs respectively. The initial deal between IDBI Bank and some of its arms and Muthoot Finance was signed exactly a year ago, subject to … The RBI has turned down the proposal of Muthoot Finance to acquire IDBI Bank's mutual fund business, saying sponsoring a mutual fund is not in consonance with the activity of an operating NBFC.According to a regulatory filing by IDBI Bank on Shri M.G. Also read: All you wanted to know about loan-to-value ratio. This was subject to receipt of necessary regulatory approvals from the Securities and Exchange Board of India (Sebi) and other regulators. RBI imposition of 10 and 5 Lakh fine on Muthoot Finance and Manappuram respectively comes after flagrant and continuous violation of RBI guidelines in following protocol googletag.cmd.push(function () { googletag.display('div-gpt-ad-1494579592958-0'); }); Sukhbir Singh Badal accuses BJP of setting Hindus against Sikhs in Punjab, Pandian Stores fame Vj Chitra's husband arrested for allegedly abetting suicide, AUS vs IND | Virat is our captain right now, will think about captaincy once he leaves: Rahane, Horoscope Today, Solar Eclipse, Dec 14: Know effect of last 'surya grahan' on your zodiac sign, Nazar Na Lage! The regulator told the Gold Loan Company that the activity of sponsoring mutual funds or operating an asset management company is not commensurate […] RBI rejects Muthoot Finance's proposal to buy IDBI MF 1 min read. The RBI on Thursday said it has imposed a penalty of Rs 10 lakh on Muthoot Finance, Ernakulam, for non-compliance with directions on maintaining loan to value ratio in gold loans and on obtaining copy of PAN card of the borrower while granting gold loans of over Rs 5 lakh. You can also download our Android App or IOS App. George Muthoot was declared the 26 th Richest Indian and the Richest Malayalee in India by Forbes Asia Magazine, 2020. Also read: Manappuram Finance posts 10% rise in Q2 net profit. 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).” Linkedin. Rise in gold prices aiding demand for retail gold loans. 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Muthoot Finance hits new lifetime high, zooms over 100% from March lows RBI imposes fine on Muthoot Finance, Manappuram Finance for non-compliance The RBI has turned down the proposal of Muthoot Finance to acquire IDBI Bank's mutual fund business, saying sponsoring a mutual fund is not in consonance with the activity of an operating NBFC. Copyright © 2020, THG PUBLISHING PVT LTD. 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Presently, he is the National Executive Committee Member of FICCI and also Chairman of FICCI’s Kerala State Council. The RBI had issued a show cause notice, heard the company out and decided to levy the penalty. Follow us on Telegram, The RBI said sponsoring a mutual fund is not in consonance with the activity of an operating non-banking finance company IDBI Bank had entered into a share purchase agreement with regard to the sale of IDBI Mutual Fund to Muthoot Finance on November 22, 2019. New Delhi: The Reserve Bank of India (RBI) has declined by Muthoot Finance Ltd's proposal to buy IDBI Asset Management Ltd and IDBI MF Trustee Company Ltd from IDBI Bank Ltd and IDBI Capital Markets & Securities Ltd. Related News RBI diktat: HDFC Bank told no digital launches, new credit cards Photo Credit: Reuters. Muthoot Finance Ltd, the largest gold financing company in India in terms of loan portfolio, declared a net profit of Rs.171crs in the second quarter of FY15 and Rs.351crs for the half year ended FY15. You have reached your weekly free article limit. The Reserve Bank of India (RBI) has rejected the proposed acquisition of IDBI Mutual Fund by Muthoot Finance. Banks risk-averse towards unsecured loans. The RBI has turned down the proposal of Muthoot Finance Ltd. to acquire IDBI Bank's mutual fund business, saying sponsoring a mutual fund is not in consonance with the activity of an operating NBFC. (Photo: Mint) RBI rejects Muthoot Finance's proposal to buy IDBI MF 1 min read. Or click on Free Trial to get 14 days free trial. Also read: Muthoot Finance posts 4% rise in Q2 net profit. In both the cases, RBI said its action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. The RBI has turned down the proposal of Muthoot Finance to acquire IDBI Bank's mutual fund business, saying sponsoring a mutual fund is not .. India TV 24/11/2020 09:50:52 PM Share: Industrial Bureau:- The Reserve Bank of India has declined the offer of non-bank lender Muthoot Finance to acquire IDBI Asset Management Company on the basis of synergy – or its conspicuous absence. Updated: 24 Nov 2020, 05:57 PM IST Edited By J. Jagannath 'The … 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).” According to a regulatory filing by IDBI Bank Ltd. on Nov. 24, a share purchase agreement with regard to sale of IDBI Mutual Fund to Muthoot Finance was signed on Nov. 22, 2019. Mumbai, Nov 24 : The Reserve Bank of India (RBI) has rejected the proposed acqusition of IDBI Mutual Fund by Muthoot Finance. Mumbai, Nov 19 (IANS): The Reserve Bank of India (RBI) on Thursday imposed penalties of Rs 10 lakh and Rs 5 lakh on Muthoot Finance and Manappuram Finance respectively for norm violations. Muthoot Finance’s request for a no objection certificate to acquire IDBI Capital Markets & Securities, IDBI Trustee and IDBI Asset Management has not been approved by RBI on the grounds that the activity of sponsoring a mutual fund or owning an asset management company is not in consonance with the activity of an operating NBFC. Muthoot Finance had proposed to purchase 100 equity shares of IDBI AMC and IDBI MF Trustee Company held by the sellers for a total consideration of Rs 215 crore. The central bank, in a statement, said statutory inspection of Muthoot Finance with reference to its financial position as on March 31, 2018 and March 31, 2019, revealed, inter alia, the non-compliance. RBI''s targeted long-term ... for industry," said George Alexander Muthoot, MD, Muthoot Finance. Shri M. G. George Muthoot has been honoured with many prestigious awards. 26 November, 2020. Muthoot Finance Ltd. is an Indian financial corporation and the largest gold loan NBFC in the country. Please Subscribe to get access to one of our early bird packs. Image Source : FILE RBI imposes penalty on Muthoot Finance, Manappuram Finance The RBI on Thursday stated it has imposed a penalty of Rs 10 lakh on Muthoot Finance, Ernakulam, for non-compliance with instructions on keeping up mortgage to worth ratio in gold loans and on acquiring a duplicate of the PAN card of the […] RBI rejects Muthoot Finance's plan to buy IDBI AMC. In addition to financing gold transactions, the company offers foreign exchange services, money transfers, wealth management services, travel and tourism services, and sells gold coins. Muthoot Finance: The RBI has turned down the proposal of Muthoot Finance to acquire IDBI Bank's mutual fund business, saying sponsoring a mutual fund is not in consonance with the activity of an operating NBFC. NEW DELHI: The RBI has turned down the proposal of Muthoot Financeto acquire IDBI Bank's mutual fund business, saying sponsoring a mutual fund … The non-bank financier said in a regulatory filing on Tuesday that the central bank has conveyed to them that “the activity of sponsoring a mutual fund or owning an … The RBI said sponsoring a mutual fund is not in consonance with the activity of an operating non-banking finance company IDBI Bank had entered into a share purchase agreement with regard to the sale of IDBI Mutual Fund to Muthoot Finance on November 22, 2019. Banks aggressively lending retail gold loans. The central bank said the statutory inspection of Manappuram Finance with reference to its financial position as on March 31, 2019, revealed, inter alia, non-compliance with the RBI directions on verification of ownership of gold jewellery. And it has every reason to smile. 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