Business news · Policy & Regulation · 01 Oct 2026
The Reserve Bank of India on October 1 changed the rules for acquiring major shareholding in banks. SEBI-registered mutual funds, IRDAI-registered insurers and PFRDA-registered pension funds can now get a single approval covering later purchases up to 10% of a bank, instead of going back to the regulator each time their holding fell below 5% and they wanted to cross it again. The first acquisition of a major stake still needs prior approval. Applications go through the PRAVAAH portal, holders must report within three working days when they cross 5% in either direction, and the RBI can withdraw the approval. The change took effect immediately.
The rule covers commercial banks, small finance banks, payments banks and local area banks, so every listed bank is in scope as an investee. It matters most for mid-sized and smaller private banks and small finance banks, where a single domestic fund house can reach the 5% line with a modest purchase and where past RBI nods for fund houses to hold up to about 10% were given bank by bank. Asset managers and life insurers gain operational room to trade around the 5% mark without a fresh application. This is a procedural easing: the 10% ceiling, the fit-and-proper test and the bar on promoter-group entities are unchanged, so it does not by itself alter who can own a bank.
Reported by The Tribune ↗ on 01 Oct 2026.
NSE stocks, from the last close on or before 01 Oct 2026 to the close on 15 Oct 2026.
| Sector | Stocks | Median move | Up | vs all stocks |
|---|---|---|---|---|
| Financial Services | 125 | +0.8% | 78 of 125 | +1.4 pts |
| All tracked stocks | 804 | -0.6% | 356 of 804 | — |
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