RBI Approves Avenir's Majority Stake in Sammaan Capital

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AuthorIshaan Verma|Published at:
RBI Approves Avenir's Majority Stake in Sammaan Capital
Overview

The Reserve Bank of India has approved Avenir Investment's acquisition of a 66.65% stake in Sammaan Capital Ltd. This regulatory nod also signifies an indirect change of control for Sammaan Finserve Ltd. Key conditions were imposed on the non-banking financial company, including strict compliance and a director appointment. The transaction must be completed within one year.

RBI Approves Avenir's Sammaan Capital Deal

The Reserve Bank of India has given its approval for Avenir Investment RSC Ltd to acquire a 66.65% stake in Sammaan Capital Ltd. The decision, announced Tuesday, March 24, also confirms an indirect change of control for Sammaan Finserve Ltd, a subsidiary.

Key Conditions Attached to Approval

Along with the stake acquisition, the RBI approved Alwyn Dinesh Crasta's appointment as a director for up to five years. A waiver was also granted for the public notice requirement for this transaction. However, the central bank imposed several crucial conditions on the non-banking financial company (NBFC). These include ensuring no other group entity engages in unauthorized NBFC activities and a strict ban on raising public deposits. The NBFC must also follow all regulatory directives issued periodically.

Compliance Requirements and Deadline

The approval hinges on Sammaan Capital fully complying with RBI's 2025 directions on NBFC shareholding and governance. It also requires adherence to the Companies Act, 2013, and the Foreign Exchange Management Act, 1999. The entire transaction must be completed within one year, otherwise, the approval will expire.

Market Response and RBI's Oversight

Shares of Sammaan Capital Ltd saw a positive reaction, closing 6.55% higher on Tuesday, March 24, at ₹138.51 on the NSE. The RBI stated it reserves the right to impose further conditions or revoke the approval if any negative information emerges regarding the acquirer or the appointed director.

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