1729 Capital, a Foreign Portfolio Investor (FPI) registered with the Securities and Exchange Board of India (SEBI), has received enhanced approval from the Reserve Bank of India (RBI) to acquire up to 9.99% stake in Suryoday Small Finance Bank Limited (SSFB). This latest development significantly expands upon the earlier post-facto approval for 7.14% shareholding, marking a substantial milestone for both entities.

Latest RBI Approval Details

The Reserve Bank of India has granted prior approval to 1729 Capital and its associates for the expanded stake acquisition through a letter dated December 10, 2025. This approval represents a notable increase from the previously sanctioned 7.14% holding.

Regulatory Framework and Compliance

The enhanced approval comes with stringent regulatory compliance requirements that 1729 Capital must adhere to throughout its investment tenure.

Key Investment Conditions

The RBI has established specific conditions governing 1729 Capital's investment in Suryoday Small Finance Bank. The aggregate holding must not exceed 9.99% of the paid-up share capital or voting rights at any time. Additionally, if the aggregate holding falls below 5% at any point, prior RBI approval will be required to increase it back to 5% or more.

Financial Context and Bank Performance

Suryoday Small Finance Bank has demonstrated robust financial growth, providing a solid foundation for increased investor interest.

Strategic Implications

This enhanced approval reflects growing institutional confidence in Suryoday Small Finance Bank's business model and growth prospects. The increased stake limit provides 1729 Capital with greater strategic influence while maintaining compliance with regulatory frameworks governing foreign investments in Indian banking institutions. The progressive approvals from 7.14% to 9.99% demonstrate the RBI's measured approach to foreign portfolio investments in the small finance banking sector.

Suryoday Small Finance Bank 's Managing Director, CEO, and Promoter, Baskar Babu Ramachandran, has received approval for a trading plan to acquire 50,000 equity shares of the bank. This move, approved under SEBI insider trading regulations, demonstrates a significant commitment from the bank's leadership.

Key Details of the Trading Plan

Regulatory Compliance and Restrictions

The trading plan, approved on November 13, 2025, adheres to the Securities and Exchange Board of India (SEBI) Prohibition of Insider Trading Regulations, 2015. Key points of the plan include:

1. A mandatory 120-day cool-off period for Ramachandran and his immediate relatives.
2. The plan is irrevocable, requiring strict adherence to the outlined trades.
3. Execution is subject to the absence of any unpublished price-sensitive information.

Implications and Context

This move by Ramachandran may be seen as a vote of confidence in Suryoday Small Finance Bank's future prospects. It's worth noting that such insider purchases often signal management's positive outlook on the company's value and potential growth.

Additional Corporate Updates

In a separate but related development, Suryoday Small Finance Bank also disclosed that the Reserve Bank of India (RBI) has granted post facto approval to 1729 Capital and its associates for an aggregate holding of 7.14% in the bank. This approval, dated November 13, 2025, is subject to compliance with various regulatory provisions, including the Banking Regulation Act, 1949, and RBI's guidelines on acquisition and holding of shares in banking companies.

These developments underscore the dynamic nature of Suryoday Small Finance Bank's corporate landscape and its adherence to regulatory requirements in its operations and ownership structure.