Capital markets regulator Sebi on Friday exempted government from making open offer to pick up an additional stake in Indian Overseas Bank through preferential allotments. The central government, which is the promoter of the bank, has proposed to acquire more than 48.56 crore shares of Indian Overseas Bank (IOB) following a proposed preferential allotment by the lender.The government presently holds 73.80 per cent stake in the bank and the proposed allotment of shares would increase the shareholding by five per cent in the financial year mandating an open offer under the Takeover Regulation.
In an order, the Securities and Exchange Board of India (Sebi) said there would not be any change in the management control in the bank following the proposed transaction.