RIL Seeks To Cap Stake Of Any Investor At 5%

Mukesh Ambani’s Reliance Industries Ltd. has sought shareholders’ nod to amend the Articles of Association of the company to limit the shareholding of any investor under 5 percent to comply with the central bank’s norms for its payments bank.

Through a special resolution, it seeks to cap the shareholding of investors other than promoters till RIL remains the promoter of Jio Payments Bank Ltd., the company said in a notice to shareholders. The company will hold its annual general meeting on July 21.

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RIL’s Jio payment bank received a licence subject to certain terms and conditions, the company said. Any increase in stake beyond five percent, will require nod from the Reserve Bank of India. RIL is the promoter of the payment bank with 70 percent and State Bank of India Ltd. holds the rest.

The company had given an undertaking to amend the Articles of Association to meet RBI’s requirement, its notice to shareholders said.

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Currently, state-owned Life Insurance Corporation of India holds 8.31 percent in the company. The next biggest shareholder is Europacific Growth Fund, which owns 3.07 percent as of March-end.