Proposed deal between Rs 2,000 crore PNB Housing and Carlyle shocks

(PTI) New delhi date. 20

SEBI has banned shareholder voting in PNB Housing Finance's proposed Rs 2,000 crore deal with Carlyle Group.

SEBI has further directed that it complete the evaluation process under the relevant legal provisions. Shareholders were scheduled to vote on the agreement on June 6. However, with SEBI now banning shareholder voting, the voting will not be possible on June 3.

SEBI and RBI are monitoring the agreement after concerns were raised by several organizations, including a proxy advisory firm. Under the agreement, Carlyle Group will take control of PNB Housing Finance, a subsidiary of Punjab National Bank.

For this, a meeting was to be held on June 3 for the approval of the shareholders. As per the information provided by PNB Housing Finance to the stock exchange, SEBI has blocked the shareholder voting on June 8. According to SEBI, the agreement is unconstitutional.

PNB Housing Finance, a company promoted by PNB, said it had received a letter from SEBI on June 15. SEBI has asked the company to abide by the legal provisions in the case.

Stakeholder Empower Services (SES), headed by JN Gupta, former executive director of SEBI, had protested against the agreement. SESA further said that the agreement ignored the minority shareholders of PNB Housing Finance.