New Delhi, February 13 MUFG has proposed appointing two directors on the Shriram Finance board as nominees of the investor, following the Japanese bank's acquisition of a 20 per cent stake.
Morihiko Fuji and Shinichi Fujinami would be appointed to the board to meet the applicable "fit and proper" criteria for appointment as directors of the company, Shriram Finance said in a regulatory filing.
The appointment would be subject to receipt of written approval from the Reserve Bank of India and the consummation of the proposed issuance and allotment of 47.11 crore equity shares of Shriram Finance to MUFG.
Furthermore, MUFG has also received approval from the RBI for the acquisition.
"We have been informed by the investor (MUFG) that the RBI has confirmed that the investor is not required to obtain prior approval from the RBI for the proposed transaction," it said in another filing.
Japan's Mitsubishi UFJ Financial Group Inc (MUFG) announced in December the acquisition of a 20 per cent stake in Shriram Finance for Rs 39,618 crore (approximately USD 4.4 billion), marking the largest cross-border investment in India's financial sector to date.
