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The Securities and Exchange Board of India (SEBI) has approved Corporation Bank’s plans to issue equity shares to its employees under the Employee Stock Purchase Scheme.
The bank informed the stock exchanges on Tuesday that SEBI has given it approval to issue up to 10 crore fresh equity shares to employees through the Employee Stock Purchase Scheme as a method to comply with the requirement of minimum public shareholding.
The SEBI letter to the bank said approval is subject to the bank obtaining due approvals of the Reserve Bank of India and Government of India.
It may be mentioned here that the extraordinary general meeting of shareholders of Corporation Bank on September 7 had approved a special resolution to issue up to 10 crore equity shares of face value of Rs 2 each at a premium to the employees of the bank under ‘Corporation Bank Employee Stock Purchase Scheme’ (CorpBank-ESPS) in one or more tranches in line with the provisions of the SEBI.
During the quarter ending June, public shareholding in the bank stood at 20.13 per cent. The Government of India held 79.87 per cent of shares in the bank during the period.
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