Tag: ICICIPrudential

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Corporate

RBI clears 9.95% stake IDFC first, then Federal Bank

The Reserve Bank of India (RBI) has approved ICICI Prudential Asset Management Company (AMC) and ICICI Bank group entities to acquire up to 9.95% stake in IDFC First Bank and Federal Bank.

Both banks informed stock exchanges that they received the RBI’s approval on February 11, 2026. The approval allows ICICI Prudential AMC, along with related entities of the ICICI Bank group, to buy up to 9.95% of the paid-up share capital or voting rights in each bank.

The permission is subject to strict regulatory conditions. The stake purchase must comply with the Banking Regulation Act, 1949, RBI’s guidelines on shareholding in banks, SEBI regulations, and rules under the Foreign Exchange Management Act (FEMA), wherever applicable.

Importantly, the RBI has given a one-year deadline to complete the acquisition. If the stake is not acquired within this period, the approval may lapse.

A 9.95% stake is considered a significant minority holding in the banking sector. While it does not give control over the bank, it allows the investor to have meaningful financial exposure and influence as a large shareholder.

Following the announcement, market participants closely tracked the development, as institutional investments by large financial groups are often seen as a sign of confidence in a bank’s growth prospects.

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Corporate

ICICI Pru to halt new inflows into two FoFs

ICICI Prudential Mutual Fund has decided to stop accepting new investments in two of its fund-of-funds (FoF) schemes from January 27, 2026. The decision follows changes in regulatory guidelines and will place the schemes under a grandfathering process, meaning they will continue only for existing investors.

The two schemes affected are the ICICI Prudential Passive Multi-Asset Fund of Fund and the ICICI Prudential Global Advantage Fund of Fund. According to the asset management company (AMC), the structure and investment pattern of these schemes do not fully align with the Securities and Exchange Board of India’s (SEBI) updated framework for FoFs that invest in multiple underlying funds.

As part of this move, no fresh lump-sum investments, SIPs (Systematic Investment Plans), or STPs (Systematic Transfer Plans) will be allowed after the cut-off date. Applications received before 3 pm on January 23, 2026, will be processed as usual. Existing SIPs and STPs will be discontinued from February 5, 2026. In addition, the IDCW reinvestment option in both schemes will be shifted to an IDCW payout option.

While new inflows will stop, existing investors can continue to hold their units. They will also have the flexibility to redeem or switch out their investments at any time, including through Systematic Withdrawal Plans (SWPs). The AMC clarified that there will be no restriction on exits.

The Passive Multi-Asset FoF, launched in 2022, invests in a mix of domestic and international exchange-traded funds (ETFs) and index funds, offering exposure across equity, debt, and gold. The Global Advantage FoF focuses largely on overseas markets through international funds. Both schemes have attracted significant investor interest and assets over time.

ICICI Prudential AMC said the grandfathering will remain in place until the schemes are either merged with other suitable funds or wound up, in line with SEBI rules. This process can take up to three years.

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ICICI Prudential AMC shares gain 2% on Day 2

Shares of ICICI Prudential Asset Management Company (AMC) continued their upward momentum, rising over 2 percent in early trade on the second day after listing.

The stock built on its strong debut, where it had ended nearly 19 percent above its issue price, reflecting robust investor interest. Market experts remain positive on the company’s outlook, pointing to its strong position in equity assets, consistent fund performance and growing presence in PMS and AIF segments.

Brokerages have largely advised investors to buy or hold the stock, citing healthy long-term growth prospects supported by rising equity inflows and steady profitability.