Voting Rights in Banking Company will get changed

The much awaited Banking Amendment Bill has been approved by the Indian Cabinet and the Bill will now go to the Parliament for becoming a law. Indian Banking Company till now does not allow Voting Rights in proportion to the shareholding. Whatever may be the shareholding % in a PSU Bank the Voting right cannot exceed  1% and in Private Bank the Voting right cannot exceed 10% . All these going to be changed once the Amendment Bill is passed in the Parliament. New Law: - In PSU Bank voting % restriction will increase from 1% to 10% and in Private Bank it will be increased from 10% to 26%.This is definitely a positive move by the Government. Government wants more investor to come to PSU Bank and have a say in the Management thus improving its governance standard. Investor may also now be able to claim for a berth in the Board of Banking Company. Let us see if this Bill can get passed in the Parliament!