SEPTEMBER 20248TATA CAPITAL APPEALS TO CCI TO PERMIT MERGER WITH TATA MOTORS FINANCERBI INTRODUCES GUIDELINES FOR SELF REGULATION IN FINANCE MARKETSTata Capital Ltd (TCL) has submitted a proposal to the Competition Commission of India (CCI) seeking approval for the merger of Tata Motors The Reserve Bank of India (RBI) on Monday introduced a framework for the recognition of self-regulatory organizations (SROs) in financial TOP STORIESmarkets, setting a minimum eligibility threshold of 10 crores. This move aims to expand market participation, enhance user protection, and promote fair conduct in financial markets.As the number and scale of Regulated Entities (REs) grow, alongside the adoption of innovative technologies and greater customer reach, the RBI recognized the need for improved industry standards. The introduction of SROs is expected to address this by helping to develop and ensure adherence to best practices among financial market participants.SROs will serve as intermediaries between their members and the regulator, ensuring compliance with regulatory guidelines, providing early warning systems, and fostering innovation. Additionally, SROs will frame and enforce a code of conduct for their members, offering guidance and support, particularly to smaller entities. The goal is to align industry practices with statutory and regulatory policies, thereby improving overall market standards and protecting stakeholder interests. Finance Ltd (TMFL) into TCL. According to a filing made with the antitrust regulator, the proposed transaction involves TMFL merging into TCL, with TCL remaining as the surviving entity. This merger will be executed through a scheme of arrangement that will be submitted to the National Company Law Tribunal (NCLT).Tata Motors Finance, the vehicle financing arm of Tata Motors, specializes in providing financing options to support the sales of Tata vehicles. In June, the boards of both companies approved the merger. Under the terms of the agreement, TCL will issue equity shares to TMFL's shareholders, leading to Tata Motors holding a 4.7 percent stake in the merged entity.This move is part of Tata Motors' broader strategy to exit non-core businesses and refocus on emerging technologies and innovative products.
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