On April 28, 2021, The board of Axis Bank approved the reclassification of New India Assurance Co Ltd (NIACL) from promoter category to public category investor.
- As of April 22, 2021, 0.67 per cent of the total issued and paid-up equity share capital of the Axis bank was held by NIACL.
- The approval of the stock exchanges, statutory/regulatory authorities and shareholders of the bank are also subjected to reclassification.
- Re-classification of Promoters as Public is done based on the regulatory norms of SEBI.
Background: NIACL has requested Axis Bank to reclassify it to a public category from promoter category investor.
About Promoter and Public:
- The Companies Act, 2013 defines a Promoter as one/more people who have control over the affairs of the company, directly or indirectly.
- They will plan the business, carry out all the legal formalities that are required to be fulfilled, and ensure that the business is running at the desired pace.
- The persons other than the promoter and promoter group, subsidiaries and associates of the company are called public and the public shareholding defines the equity shares of the company held by the public.
Recent Related News:
Securities and Exchange Board of India (SEBI) has set up a specialised department Corporation Finance Investigation Department (CFID) to tackle initial public offering (IPO) proceed fraud, diversion of funds, bank loans and resources by company promoters.
About Axis Bank:
Commenced operations – 1994(founded – 1993)
MD & CEO – Amitabh Chaudhry
Headquarters – Mumbai, Maharashtra
Tagline – Badhtika Naam Zindagi
About New India Assurance Co Ltd (NIACL):
Establishment – 1919
Headquarters – Mumbai, Maharashtra
Chairman & MD – Atul Sahai
