Equitas in Trouble, SEBI Rejected their Draft Scheme for Small Finance Bank

Shares of Equitas Holdings slipped 17 per cent to Rs 97 on the BSE on Monday after the Securities and Exchange Board of India (Sebi) returned the draft scheme with regard to Equitas Small Finance Bank (ESFB), citing that it was not in compliance with the regulatory provisions. This is considered to be a major setback for small level finance.

The market regulator advised the company to re-submit the same after ensuring compliance with the provisions mentioned in the Sebi circular.

Following this, Equitas Holdings informed the exchanges that it would initiate necessary steps to list its shares through an initial public offer (IPO), which was expected to be completed by March 2020.