New Delhi: IDBI Bank on Saturday announced that the SEBI has approved the reclassification of Life Insurance Corporation of India (LIC) as a public shareholder, subject to the government’s strategic disinvestment process.
As of June 2025, LIC owns 49.24 per cent in IDBI Bank. However, under SEBI’s conditions, its voting rights will be capped at 10 per cent, regardless of its equity stake. The insurer will not exercise any form of control, hold special rights, or have board or managerial representation in the bank.
Further, SEBI directed LIC to pare down its residual stake to 15 per cent or below within two years of the strategic sale, in line with RBI norms. The reclassification approval would lapse if LIC failed to meet these conditions, sebi said
Following the completion of disinvestment, IDBI Bank will have to seek stock exchange approval for LIC’s formal reclassification.
The Cabinet Committee on Economic Affairs had approved IDBI Bank’s disinvestment in May 2021, with the Centre and LIC jointly offloading stakes.