After the RBI's letter to Equitas Holdings, Ujjivan Financial Services on separate listing of small finance banks, shares of some of the small finance banks have plunged by as much as 30% in intra-trade today. In the letter, the apex bank stated that promoters of these banks need to list their entities separately within three years of conducting business.

Both of the banks clarified on the ruling and further specified that promoter's holding in the bank has been pegged at some 40% for a total of five-year period.

In an exchange filing, Ujjivan Financial Services said, "The Bank and the Company are committed to consider all appropriate measures to ensure the timely compliance of the above directives of the RBI, while ensuring the long term interests of the shareholders of the Company are maintained".

So, the two financial institutions are likely to consider the following in their meeting scheduled on November 1, 2018 and November 2, 2018:

1. To list the shares of ESFBL within the specified timeline.

2. Post the lock-in period to merge with the bank at the right time.

At 11:10 am, the stock of Ujjivan Financial Services and Equitas Holdings traded down by 16.5% and 20.05%.

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