The guidelines were to cover: process of merger proposal, determination of swap ratios, disclosures, norms for buying / selling of shares by promoters before and during the process of merger and the Board’s involvement in the merger process. The principles underlying these guidelines were also to be applicable, as appropriate, to public sector banks, subject to relevant legislation.
Accordingly, the guidelines were issued in May 2005. 18. There have been a few instances of mergers of the NBFCs with the private sector banks. The first such merger occurred in May 1999 when the RBI approved the merger of Twentieth Century Finance Corporation Ltd., an NBFC, with Centurion Bank Ltd.