NSE and BSE Issue 'No Objection' to Utkarsh Small Finance Bank’s Amalgamation Scheme

Utkarsh Small Finance Bank Limited (USFBL) has received key regulatory approvals in its journey to merge with its parent company, Utkarsh CoreInvest Limited. With the Reserve Bank of India’s no-objection already in hand, the ‘no adverse observations’ from BSE and the ‘no objection’ from NSE mark a significant forward step in the bank’s consolidation strategy.

BSE and NSE Clear the Draft Scheme of Amalgamation

In a letter dated July 7, 2025, the company stated, “The Bank has received an observation letter dated July 04, 2025, with ‘no adverse observations’ from BSE Limited and an observation letter dated July 07, 2025, with ‘no objection’ from the National Stock Exchange of India Limited.” This development follows the RBI’s earlier communication on January 3, 2025, in which the central bank conveyed its no objection to the proposed Scheme.

The Scheme of Amalgamation involves the merger of Utkarsh CoreInvest Limited (the transferor company) with Utkarsh Small Finance Bank Limited (the transferee company), along with their respective shareholders and creditors. These clearances now allow the bank to submit the scheme before the National Company Law Tribunal (NCLT), although it remains subject to further statutory and regulatory approvals.

Conditions Laid Down for Scheme Implementation

The NSE’s observation letter includes a detailed set of compliance conditions that USFBL must meet before the scheme can be enacted. These include:

• “The Company shall ensure that the proposed composite Scheme of Amalgamation and Arrangement shall be in compliance with the provisions of Regulation 11 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.”
• “The Company shall ensure to disclose all details of ongoing adjudication & recovery proceedings, prosecution initiated, and all other enforcement action taken, if any, against the Company, its promoters, and directors, before Hon'ble NCLT and shareholders.”
• Additionally, the company must ensure financial disclosures are not older than 6 months, maintain transparency on post-merger shareholding, and confirm that shares to be issued under the scheme are in demat form only.

The exchanges also reminded that the observation letters are not to be considered as approval under any other legal framework and that they reserve the right to raise objections at any future stage if discrepancies arise.

Read More: Utkarsh SFB’s Deposits Rise 23%, Retail Loans Up 45% in FY25!

Utkarsh Small Finance Bank Share Price Performance 

As of 08 July 2025, at 10:42 AM, Utkarsh Small Finance Bank share price is trading at ₹23.82 per share, a surge of 0.51%.

Conclusion

With ‘no objection’ letters from both the NSE and BSE and a prior nod from the RBI, Utkarsh Small Finance Bank is well-positioned to proceed with its proposed merger. The next steps involve presenting the scheme before the NCLT, ensuring full compliance with the detailed conditions laid out by the regulators.

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