NEW DELHI : IDBI Trusteeship Services Ltd (ITSL) has sold 12.5 lakh equity shares of Max Financial Services through an open market sale.
The shares were released on the instruction of a lender on July 2 by ITSL, which is acting as a security trustee for various NCDs, Max Financial said in a regulatory filing on Monday.
The 12.5 lakh shares are equivalent to 0.47% equity stake.
Max Financial did not name the lender upon whose instruction the said number of shares, which were pledged by it under a share pledge agreement, were released by ITSL.
Under the share pledge agreement, over 2.3 crore equity shares (8.55 per cent) are in the nature of encumbrance (pledge/lien/non-disposal undertaking).
ITSL said it is a security trustee and is holding the shares by way of share pledge as security for the benefit of lenders.
"We do not have any intention of making investment in shares or acquisition of shares for trading. ITSL needs to sell the pledged shares only when the borrower has committed default in payment of interest or repayment of principal and in no other case," ITSL said.
The sole purpose of the sale is to recover the defaulted dues of the lenders and not for making any gain, it added.
It is not the business or activity of ITSL to deal in any shares. ITSL does not operate and acquire any shares by purchasing or buying from the securities market, it said further.
Max Financial Services --holding company for the Max group's life insurance business, Max Life Insurance-- has not given any details about the default and the amount which has forced the trustee to take this step.
Max Financial Services shares settled at ₹560 on BSE, up 0.87% from the previous close.
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