The Insurance Regulatory Development Authority of India (IRDAI) has given approval to Life Insurance Corporation of India (LIC), to invest up to 51% in IDBI Bank.
As per sources, this is a special case dispensation that has been given to LIC and the 15% equity investment cap still remains. LIC currently holds 10.8% in IDBI Bank and will buy the additional stake using the policyholder account funds. IDBI Federal Life will continue to be promoted by IDBI Bank and LIC will have no control over it.
Moreerover, as per Securities and Exchanges Board of India (SEBI) norms, IDBI Bank will now have to seek an exemption from a panel under section 11 of the Takeover Code, to make an open offer.
