Employees Provident Fund approves Reliance-Nippon stake dealAugust 7th, 2012 - 6:27 pm ICT by IANS
New Delhi, Aug 7 (IANS) The Employees Provident Fund Organisation (EPFO) Tuesday gave its nod to the 26 percent stake sale by Reliance Capital Asset Management Company to Japan’s Nippon Life insurance group.
“At today’s (Tuesday) meeting, the proposal of Reliance Capital Asset Management has been approved,” EPFO trustee and Hind Mazdoor Sabha (HMS) secretary A.D. Nagpal said.
The meeting was chaired by Labour Minister Mallikarjun Kharge.
According to Nagpal, the members were satisfied with the explanation given by Reliance Capital Asset Management that there will not be any change in the overall company policy or in the management.
“It is only a stake sale. We have not imposed any condition earlier that the company should not have any foreign equity holding. Further, the company had got permission from other authorities,” Nagpal added.
The Reserve Bank of India (RBI), the Competition Commission of India (CCI) and the Pension Fund Regulatory and Development Authority (PFRDA) have already approved the proposed stake sale.
Last year, the EPFO appointed Reliance Capital Asset and others as its fund managers for three years.
As per the terms of appointment, the fund managers should not undertake measures like mergers, divestment and others without the approval of trust.
Early this year, Reliance Capital had announced that Nippon Life would take 26 percent stake in Reliance Asset Management for Rs.1,450 crore. The deal is the largest foreign direct investment in the Indian mutual fund sector.
- Reliance Capital gets regulator's nod to sell stakes to Nippon Life - Jun 13, 2012
- Reliance Cap concludes stake sale to Nippon Life for $290 mn - Aug 17, 2012
- Nippon Life to buy into Reliance Group arm - Jan 19, 2012
- Nippon's pact for 26-percent stake in Reliance asset firm - Mar 22, 2012
- Regulator's nod for Reliance Capital's 26 percent stake sale to Nippon - Sep 14, 2011
- Nippon Life to invest $290 mn in Reliance Capital arm (Lead) - Jan 19, 2012
- Reliance Life concludes 26 percent stake sale to Nippon for $680mn - Oct 09, 2011
- Reliance Life gets central bank nod for stake sale to Nippon - Sep 30, 2011
- Reliance Capital to consider special dividend: Ambani - Sep 04, 2012
- Reliance Capital pact with Nippon in areas beyond insurance - Sep 01, 2011
- Reliance Capital to pay special dividend of 50 percent - Sep 10, 2012
- Kharge hopes EPF interest rate will be hiked to 9.5 percent - Feb 16, 2011
- Anil Ambani talks of unlocking shareholder value (Roundup) - Sep 27, 2011
- Reliance Capital mulling bonus, banking entry: Ambani - Sep 27, 2011
- EPFO defers decision on PF interest rate - Apr 09, 2010
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