REGULATORS TO VET PNB HOUSING FINANCE PLAN TO RAISE `4K CR FROM CARLYLE

New Delhi, June 14: Reserve Bank of India and Sebi will look into various regulatory issues related to the proposed Rs 4,000-crore investment by US-based private equity firm Carlyle and others in PNB Housing Finance, sources said on Monday.

Last month, the board of PNB Housing Finance cleared a proposal to raise up to Rs 4,000 crore by issuing preference shares and convertible warrants to Carlyle Group firms and other entities.

According to the sources, concerns of minority shareholders, corporate governance and others regulatory aspects would be looked into by the RBI and the Securities and Exchange Board of India (Sebi).

Earlier this year, the RBI had shot down a Punjab National Bank (PNB) proposal to infuse capital into its subsidiary PNB Housing Finance through a rights issue on concerns of the lender's financial health.

About the proposed deal, PNB managing director and CEO S. S. Mallikarjuna Rao, earler this month, said the bank will neither be investing nor divesting its stake but because of investment from other sources, its shareholding could come down to around 21 per cent.

Currently, PNB as a promoter holds 32.64 per cent stake in PNB Housing Finance.

PNB Housing Finance's extraordinary general meeting (EGM) is scheduled to be held on June 22 to seek shareholders' approval for the preferential allotment of shares on a private placement basis to Carlyle and other entities, besides other proposals.