The Centre is seeking to remove 10 per cent shareholding capital for individuals in public sector banks. This will help the private equity firms to pick up stakes in PSBs(Public Sector Banks) on the block for privatization. The government may propose changes to the laws bills which seeks to bring changes to the Banking Companies Act and the Banking Regulation Act. The removal of shareholding cap will allow the high net worth individuals also the PE firms to buy a larger stake. This was notified by the regulator in banks. This will also widen the pool of buyers eligible to bid PSBs. An official said when the cap is removed the Centre may empower the RBI to notify the threshold from time to time
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