According to the terms of the transaction, LIC’s voting rights must not exceed 10 per cent and the insurer is also barred from exercising direct or indirect control over the bank’s affairs
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Dado Ruvic
The Securities and Exchange Board of India (Sebi) has allowed reclassification of Life Insurance Corporation of India (LIC) as a public shareholder in IDBI Bank, according to an exchange filing. LIC holds 49 per cent stake in IDBI Bank as on June end.
According to the terms of the transaction, LIC’s voting rights must not exceed 10 per cent and the insurer is also barred from exercising direct or indirect control over the bank’s affairs. LIC shall also not have any special rights with respect to the IDBI Bank, through formal or informal arrangements.
“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 residual shareholding in the IDBI Bank reclassified as public shall be specified in the letter of offer dispatched to the shareholders of the IDBI Bank in connection with the open offer made by the new acquirer pursuant to the strategic disinvestment of the IDBI Bank,” the notice said.
It added that post completion of the strategic disinvestment transaction, LIC shall bring down its residual shareholding in the IDBI Bank to 15 per cent or below, within two years of the closing date, as directed by the Reserve Bank of India. The government had in May 2021 approved privatising IDBI Bank.
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Published on August 24, 2025
