New Delhi: Private sector lender IndusInd Bank on Tuesday said its agreement to fully acquire IL&FS Securities Services (ISSL) has been terminated due to non-fulfilment of conditions. In June this year IndusInd Bank had signed a share purchase agreement with Infrastructure Leasing and Financial Services (IL&FS) to acquire its securities services subsidiary. “The share purchase agreement (SPA) stands terminated as all the conditions precedent were not satisfied within the stipulated time period,” IndusInd Bank said in a regulatory filing.
ISSL, incorporated in 2007, is a capital market intermediary for professional clearing, depository and custodial services and caters to both retail and institutional clients including over 1,000 brokers, FPIs and FIIs. “We understand that the newly constructed board of directors of IL&FS has decided to initiate a new process for the sale of its equity interests in ISSL,” IndusInd Bank added.
Lenders oppose moratorium
Lenders of IL&FS group opposed before the NCLAT the 90-day moratorium over the loans taken by the debt-laden group and its subsidiaries. The banks have also asked the appellate tribunal to allow them not to classify IL&FS account as NPA in case of non-payment. Meanwhile, the government informed NCLAT that it has prepared a roadmap to revamp the company. The tribunal has fixed December 17 as the next date of hearing. On October 15, NCLAT had stayed all proceedings against IL&FS group and its 348 firms till its further orders, over an urgent petition moved by the government.
The Ministry of Corporate Affairs had approached the appellate tribunal after the Mumbai bench of National Company Law Tribunal (NCLT) turned down its plea to grant 90-day moratorium over the loans taken by IL&FS and its subsidiaries. The NCLT on October 1 suspended the board of IL&FS on the government’s plea and authorised reconstitution of the board by appointing seven directors two days later.
