Overview

• SEBI capped LIC’s voting power in IDBI Bank at 10% of total net effective voting rights regardless of its shareholding.
• LIC is barred from board representation, management roles, and any special or informal rights at the lender.
• IDBI Bank said it will seek formal reclassification from stock exchanges after the government’s strategic disinvestment closes.
• The market regulator’s nod carries strict compliance conditions and becomes void if any are breached.
• LIC currently holds about 49.24% and must reduce to 15% or below within two years of closing, with the sale advancing through due diligence ahead of bids expected by Q3.