Private Bank Shares Rise 4% After SAFEMA Tribunal Dismisses ED Appeal; FII Stake at 6.19%
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The Appellate Tribunal under SAFEMA, New Delhi dismissed an appeal by the Directorate of Enforcement seeking confiscation of 46,862 shares transferred in the name of foreign investors, with the bank stating the order will have no material impact on its financials.
✨ Key Takeaways
On Wednesday, Indian equity benchmarks traded higher, with the benchmark Nifty 50 index gaining 0.63 per cent to 24,204.70. Amid the broader market strength, shares of Tamilnad Mercantile Bank Limited traded at Rs 813.40, up 4.24 per cent from the previous close, after the bank disclosed that the Appellate Tribunal under SAFEMA, New Delhi had dismissed an appeal filed by the Directorate of Enforcement.
Tribunal Dismisses Enforcement Directorate's Appeal
Tamilnad Mercantile Bank Limited informed the exchanges on July 14, 2026, that the Deputy Legal Advisor of the Directorate of Enforcement had filed an appeal dated January 27, 2021, before the Appellate Tribunal under SAFEMA, New Delhi.
The appeal sought confiscation of 46,862 shares transferred in the name of foreign investors or, alternatively, remanding the matter for fresh adjudication. The Appellate Tribunal dismissed the appeal through an order dated July 9, 2026, a copy of which was received by the bank on July 14, 2026.
Background of the Case
The matter originated from a Show Cause Notice dated December 17, 2014, issued by the Directorate of Enforcement. Subsequently, the Special Director passed an adjudication order on August 14, 2020, imposing a penalty on the bank and certain other parties for the alleged violation of FEMA regulations relating to the recording of share transfers.
Following the adjudication order, the Directorate of Enforcement preferred an appeal before the SAFEMA Appellate Tribunal, which has now been dismissed.
No Material Financial Impact
Tamilnad Mercantile Bank stated in its regulatory filing that the Tribunal's order is not expected to have any material impact on the bank's financial statements.
FII Stake Climbs to 6.19%
According to the latest shareholding data, foreign institutional investor (FII) ownership in Tamilnad Mercantile Bank has increased steadily over the past three years. FII holding rose from 0.07 per cent in June 2023 to 6.19 per cent as of March 2026.
During the same period, domestic institutional investor (DII) ownership declined from 5.09 per cent to 1.91 per cent, indicating a shift in the bank's institutional shareholding pattern.
About Tamilnad Mercantile Bank Limited
Tamilnad Mercantile Bank Limited is a scheduled commercial bank headquartered in Thoothukudi, Tamil Nadu. Incorporated in 1921, the bank provides a range of banking and financial services to retail, MSME, agricultural and corporate customers through its branch network across India.
The bank has a strong presence in southern India and continues to expand its digital banking offerings and geographical footprint across the country.
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What are your thoughts on the SAFEMA Appellate Tribunal's dismissal of the Enforcement Directorate's appeal against Tamilnad Mercantile Bank? Share your views in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.