MUFG proposes two directors on board of Shriram Finance

New Delhi, Feb 13 (PTI) MUFG has proposed two directors to be appointed on the board of Shriram Finance as nominees of the investor following the acquisition of a 20 per cent stake by the Japanese bank.

Morihiko Fuji and Shinichi Fujinami would be appointed on the board to satisfy the applicable ‘fit and proper’ criteria for appointment as directors of the company, Shriram Finance said in a regulatory filing.

The appointment would be subject to receipt of written approval from the Reserve Bank of India and consummation of the proposed issuance and allotment of 47.11 crore equity shares of Shriram Finance to the MUFG, it said.

Besides, MUFG has also got an approval from the RBI for the acquisition.

“We have been informed by the investor (MUFG) that

the RBI has confirmed that the investor is not required to obtain prior approval from the RBI for the proposed transaction,” it said in another filing.

Japan’s Mitsubishi UFJ Financial Group Inc (MUFG) in December announced the acquisition of a 20 per cent stake in Shriram Finance for Rs 39,618 crore (around USD 4.4 billion), marking the largest cross-border investment in India’s financial sector to date. PTI DP HVA