Overview

• LIC’s voting rights in IDBI Bank will be capped at 10% of total net effective voting rights regardless of its equity holding.
• SEBI’s conditions bar LIC from board representation, special rights or any direct or indirect control over the lender.
• The reclassification will take effect only after the strategic disinvestment closes, with IDBI Bank required to seek stock‑exchange approval or risk withdrawal of SEBI’s nod for non‑compliance.
• RBI requires LIC to cut any residual stake to 15% or below within two years of the transaction’s closing date.
• DIPAM says the expression of interest phase has concluded with due diligence in progress and bid invitations expected in the third quarter of the fiscal, while LIC held about 49.24% as of the June quarter.