Shares in Lakshmi Vilas Bank have been suspended, which means investors are no longer going to get any value for their shares.
Many shareholders have been left high and dry and in fact many shareholders had opposed the merger, given that the new shareholders would have no obligation to buy the shares and they would be delisted.
"Members of the Exchange are hereby informed that the trading in equity shares of Lakshmi Vilas Bank Limited NSE 4.79 % shall be suspended w.e.f November 26, 2020 (i.e. closing hours of trading on November 25, 2020) on account of gazette notification dated November 25, 2020 issued by Department of Financial Services, Ministry of Finance," NSE said.
The Government of India sanctioned the Scheme for the amalgamation of the Lakshmi Vilas Bank Ltd. with DBS Bank India Ltd. The amalgamation will come into force on the Appointed date i.e. November 27, 2020. All the branches of the Lakshmi Vilas Bank Ltd. will function as branches of DBS Bank India Ltd. with effect from this date.
Customers, including depositors of the Lakshmi Vilas Bank Ltd. will be able to operate their accounts as customers of DBS Bank India Ltd. with effect from November 27, 2020. Consequently the moratorium on the Lakshmi Vilas Bank Ltd. will cease to be operative from that date. DBS Bank India Ltd. is making necessary arrangements to ensure that service, as usual, is provided to the customers of the Lakshmi Vilas Bank Ltd.