According to the terms of the transaction, the voting rights of LIC may not exceed 10 percent and the insurer may also not exercise direct or indirect control over the affairs of the bank | Photocredit: Dado Ruvic
The Securities and Exchange Board of India (Sebi) has made reclassification of Life Insurance Corporation of India (LIC) possible as a public shareholder at IDBI Bank according to an exchange application. LIC has a 49 percent interest in Idbi Bank such as at the end of June.
According to the terms of the transaction, LIC’s voting rights may not exceed 10 percent and the insurer may also not exercise direct or indirect control over the affairs of the bank. LIC also has no special rights with regard to the IDBI Bank, via formal or informal regulations.
“Lic shall not be represented on idbi bank’s board of directors (including not having a nominee director) nor act as a key managerial person. The intention of lic to get its’s residual shareholding in the idbi bank reclassified as public shawlders in the letter of sacroferderderderderderderderderderderderderderderderderderderderderedy offer With the open sacrifice made by the New Acquirer pursuant to the strategic Disinvestment of the Idbi Bank, “The Notice said.
It added that the completion of the strategic disinvestment transaction, LIC will lower its remaining shareholding in the Idbi Bank to 15 percent or lower, within two years of the closing date, prescribed by the reserve Bank of India. The government had approved approved privatizing Idbi Bank in May 2021.
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Published on August 24, 2025
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