IIFL Finance to sell NSE shares worth ₹84.7 crore
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IIFL Finance has received approval to sell NSE shares worth up to ₹84.7 crore through the secondary market, the non-banking financial company said in an exchange filing.
"We wish to inform you that IIFL Finance Limited (the “Company”) has received approval from NSE to divest equity shares aggregating up to ₹84,70,00,000/- (Rupees Eighty Four Crores Seventy Lakhs only) of NSE through Secondary market," the filing stated.
In April this year, the NBFC announced the acquisition of 0.18% stake in NSE for ₹284.40 crore from FIH Mauritius Investments, stating in the regulatory filing that the company does not intend to acquire control of the management or of the target entity.
"FIH is a related party of the Company as per Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The promoter / promoter group / group companies of the Company have no interest in the shares being acquired. The transaction is on arm’s length basis," IIFL Finance said in the BSE filing on April 1, 2024.
Meanwhile, the Reserve Bank of India (RBI) on June 15 concluded its special audit of the company, initiated in response to significant concerns identified in its gold loan portfolio.
This audit, which began on April 23, 2024, follows an earlier inspection of IIFL's financial position as of March 31, 2023, that led to the imposition of supervisory restrictions on March 4, 2024.
The RBI's initial inspection revealed several irregularities in IIFL's gold loan operations, including cash disbursals and collections exceeding statutory limits, non-compliance with the standard auction process, deviations in assaying and certifying gold purity and weight, breaches in the Loan-to-Value (LTV) ratio, and a lack of transparency in customer charges.