The Securities and Exchange Commission (SEC) has rejected an application by Republic Bank to be exempted from taking over HFC Bank.The biggest financial institution in the Caribbean, Republic Bank, earlier this month asked the regulator to excuse them from taking over HFC.This was after it increased its stake in HFC to 32 percent, making it the single largest shareholder in the bank.But JOYBUSINESS has learnt, SEC has refused Republic Bank’s request because they believe other shareholders should be given the opportunity to sell their shares looking at the change in ownership of the bank. The Caribbean bank would now be required to buy out the remaining shareholders following this ruling.The current Securities and Exchange Commission code on takeovers and mergers requires Republic Bank to make a mandatory offer to shareholders of HFC Bank for a takeover.Republic Bank in its application had indicated that it has no intention of taking over HFC Bank now, because it has not got a deeper understanding of the Ghanaian market.But it appears with this development this might change. However a source close to the HFC Bank has told JOYBUSINESS, shareholders still have a choice to accept or reject the offer from Republic Bank.