Centre Grants IDFC First Bank Exemption from 30% Shareholding Cap in Niraj Kakad Constructions

The Centre has granted IDFC First Bank exemption from the 30% shareholding cap in Niraj Kakad Constructions. This is a reconfirmation of the news, highlighting that the Finance Ministry is the approving authority. This exemption, for a period of five years, provides the bank flexibility in its investment or holding in the construction company. Such exemptions are rare and granted usually in cases where a bank might have taken over equity as part of a distressed asset resolution or a strategic investment approved by the government to facilitate a specific objective.