• About Us
    • Fact Checking Policy
    • Ownership & funding information
    • Volunteer
  • Subscribe
  • Letter submission
    • Submissions Policy
  • Contact Us
The Online Citizen Asia
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
The Online Citizen Asia
No Result
View All Result

Indian court directs DBS to give undertaking to compensate LVB shareholders in case it rules so later

by Correspondent
02/12/2020
in Court Cases, Finance
Reading Time: 2 mins read
41

It was reported that the Indian High Court in Madras passed an interim order last Fri (27 Nov), proceeding to protect the interests of the Lakshmi Vilas Bank (LVB) shareholders.

The Indian government has earlier announced to merge the loss-making LVB with DBS India.

It has also allowed the entire amount of the paid-up share capital of LVB to be written off. That is to say, LVB’s equity will go down to zero and the original shareholders of LVB will get nothing.

Following this announcement, LVB shareholders filed a petition to the High Court in Madras demanding compensations.

In its interim order, the Madras High Court directed DBS that no further prejudicial action should be taken against the LVB shareholders and asked DBS to furnish an undertaking to compensate LVB shareholders in case the Court rules so at a later stage.

The High Court further directed DBS to create a separate reserve fund in its books of account to the extent of the face value of shares of the transferor company (LVB) and maintain the same subject to further orders from the Court.

“…completely reducing the shares is not an exercise which has happened in the public domain and the shareholders do not appear to be aware of the exact reasons why this is so,” the Court observed.

Further, the court added that even if the authorities have the power to reduce the share value during an amalgamation under Section 45 of the Banking Regulation Act, reducing it to zero or negative, prima facie, it cannot be done without very compelling reasons.

Major shareholders in LVB include Indiabulls Housing Finance (4.99 per cent), Prolific Finvest Private Ltd (3.36 percent), Srei Infrastructure Finance (3.34 percent), MN Dastur and Co Pvt Ltd (1.89 percent), Capri Global Holdings Pvt Ltd (1.82 percent), Capri Global Advisory Services (2 percent), Boyance Infrastructure Pvt Ltd (1.36 percent) and Trinity Alternative Investment Managers (1.61 percent).

As of 27 Nov, LVB ceased to exist and have become part of DBS India. LVB was founded in 1926 by a group of businessmen in Tamil Nadu. The bank rose to prominence lending to small businesses.

But the fall came quick after it aggressively shifted from retail to wholesale loans, resulting in a lot of bad loans.

The next hearing is likely to be held on January 5 next year.

For just US$7.50 a month, sign up as a subscriber on The Online Citizen Asia (and enjoy ads-free experience on our site) to support our mission to transform TOC into an alternative mainstream press.

Related Posts

Philippines to appeal ICC resumption of drug war probe
AFP

Philippines to appeal ICC resumption of drug war probe

27/01/2023
ASEAN

ASEAN governments must stop using ‘lawfare’ against critics, Southeast Asian MPs say

27/01/2023
Low Yen Ling says MTI and MAS don’t expect persistent inflation but they now say inflation projected to “stay elevated”
Economics

Low Yen Ling says MTI and MAS don’t expect persistent inflation but they now say inflation projected to “stay elevated”

27/01/2023
Malaysian court sentences man to 1,050 years’ jail, 24 strokes of the cane, for raping stepdaughter 105 times
AFP

Thai court jails activist for 28 years jail for royal defamation

26/01/2023
Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall
Community

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

26/01/2023
KKH’s lack of continuous monitoring baby’s vital signs “was not ideal”, said State Coroner
Health

KKH’s lack of continuous monitoring baby’s vital signs “was not ideal”, said State Coroner

26/01/2023
Subscribe
Connect withD
Login
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
Connect withD
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
41 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Latest posts

Philippines to appeal ICC resumption of drug war probe

Philippines to appeal ICC resumption of drug war probe

27/01/2023

ASEAN governments must stop using ‘lawfare’ against critics, Southeast Asian MPs say

27/01/2023
Low Yen Ling says MTI and MAS don’t expect persistent inflation but they now say inflation projected to “stay elevated”

Low Yen Ling says MTI and MAS don’t expect persistent inflation but they now say inflation projected to “stay elevated”

27/01/2023
Malaysian court sentences man to 1,050 years’ jail, 24 strokes of the cane, for raping stepdaughter 105 times

Thai court jails activist for 28 years jail for royal defamation

26/01/2023
Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

26/01/2023
KKH’s lack of continuous monitoring baby’s vital signs “was not ideal”, said State Coroner

KKH’s lack of continuous monitoring baby’s vital signs “was not ideal”, said State Coroner

26/01/2023
Dozens of COVID protesters still behind bars in China: HRW

Dozens of COVID protesters still behind bars in China: HRW

26/01/2023
8 dead, including 6 Chinese nationals, after ship sinks near Japan

8 dead, including 6 Chinese nationals, after ship sinks near Japan

26/01/2023

Trending posts

Two Indian nationals paid about S$330 and S$730 respectively for forged certificates submitted in their S-Pass application

MOM found issuing EPs meant for foreign PMETs to PRC waitress and general worker

by Correspondent
26/01/2023
30

...

Ho Ching breaks silence over Temasek’s write down of its US$275 million investment in FTX, says it “can afford to be contrarian”

US regulator questions VCs’ due diligence work prior to investing in FTX; Ho Ching says Temasek can afford to be contrarian

by The Online Citizen
24/01/2023
28

...

Indian court directs DBS to give undertaking to compensate LVB shareholders in case it rules so later

by Correspondent
02/12/2020
41

...

Indian rupee falls 60% since signing of CECA while Singapore becomes top investor in India

by Correspondent
25/01/2023
38

...

“党籍不会过期失效”  前进党称已就党籍终止知会卡拉

AGC asked to explain purposes of 68 private letters of inmates illegitimately forwarded to prosecutors

by The Online Citizen
21/01/2023
16

...

Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud

Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud

by The Online Citizen
26/01/2023
28

...

December 2020
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031  
« Nov   Jan »
  • About Us
  • Subscribe
  • Letter submission
  • Contact Us

© 2006 - 2021 The Online Citizen

No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Comments
  • Current Affairs
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Civil Society
    • Arts & Culture
    • Consumer Watch
    • NGO
  • Politics
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
  • Lifestyle
    • Travel
  • Subscribers login

© 2006 - 2021 The Online Citizen

wpDiscuz