India Infoline Ltd has obtained SEBI approval for transferring its broking licence to its wholly owned subsidiary India Infoline Distribution Co Ltd.
Shareholders of India Infoline, the listed holding company of the group, which has several subsidiaries including an NBFC, had on August 12 approved the proposed scheme of arrangement at a Bombay High Court convened meeting.
A senior official of the India Infoline Group said that the final nod from the High Court was being awaited.
“The restructuring was being done to pave way for India Infoline Finance Ltd (IIFL), the NBFC and a 99 per cent subsidiary of IIL, to be in readiness for implementing the proposal for commencing banking operations if it gets the RBI permission,” said Mukesh Kumar Singh, ED of India Infoline Finance, said here on Friday. IIFL has applied for a banking licence.
According to the new RBI guidelines for obtaining a banking licence, an entity, which is seeking the licence, and its non-operating promoter entity, should be firewalled from any conflict of interest.
Singh said that the restructuring of IIFL related to the broking business is being done conforming to the new norms. The broking business had come to IIFL’s fold in 2006 from India Infoline Securities Pvt Ltd, then a wholly owned subsidiary, through the merger route.
For India Infoline, the NBFC business is currently the biggest money spinner, while the broking business has shrunk to a third from its peak.
The Rs 2 India Infoline stock closed at 49.90 on the BSE, up 2 per cent.