MUMBAI: The Madras HC has requested RBI to perform a valuation of shares and property of DBS Bank India and Lakshmi Vilas Bank as on the date earlier than their amalgamation in Nov 2020. RBI has been requested to take a contemporary resolution on discount of the worth of shares and writing off the tier-2 bonds, based mostly on the contemporary valuation, inside 4 months.
The order was issued in a swimsuit filed by the bondholders and minority shareholders of LVB in opposition to the write-down of their funding, following a moratorium on the financial institution and earlier than the amalgamation of LVB with DBS.
In its order the court docket mentioned that it was not interfering with the choice to amalgamate LVB with DBS. The order mentioned that a number of of the buyers in these bonds are akin to the depositors, and a overview of the choice needs to be executed “keeping in mind the grievances of the shareholders and the bondholders and the hardship faced on account of the scheme of compulsory amalgamation and amelioration of the same to the extent possible”.
The order was issued in a swimsuit filed by the bondholders and minority shareholders of LVB in opposition to the write-down of their funding, following a moratorium on the financial institution and earlier than the amalgamation of LVB with DBS.
In its order the court docket mentioned that it was not interfering with the choice to amalgamate LVB with DBS. The order mentioned that a number of of the buyers in these bonds are akin to the depositors, and a overview of the choice needs to be executed “keeping in mind the grievances of the shareholders and the bondholders and the hardship faced on account of the scheme of compulsory amalgamation and amelioration of the same to the extent possible”.
