Presently the distribution of financial products businesses of IIFL Wealth Management are carried on under three wholly owned subsidiaries viz. IIFL Wealth Capital Markets (IWCML) and IIFL Wealth Prime (IWPL) and IIFL Wealth Distribution Services (IWDSL).
With a view to consolidate the above distribution businesses under a single wholly owned subsidiary, it is proposed to demerge the distribution business from IWPL and IWCML to IWDSL.
In this regard, the Boards of IWCML and IWPL and IWDSL have approved the above demerger and consolidation of distribution business through a composite scheme of arrangement under Sections 230 to 232 of the Companies Act, 2013 (Scheme).
Pursuant to this scheme, IWCML will stand merged with IWPL.
The appointed date for the Scheme is 1 April 2021 and the scheme is subject to necessary statutory and regulatory approvals.
Since the proposed consolidation is between the wholly owned subsidiaries, there will not be any change in the capital structure and net worth of IIFL Wealth Management. IWPL & IWDSL will continue as wholly owned subsidiaries of IIFL Wealth Management distinctly focused on NBFC and distribution businesses respectively.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU