HomeLifestyleIDBI Bank Privatization: Government demands continuation of SEBI exemption from 25% public...

IDBI Bank Privatization: Government demands continuation of SEBI exemption from 25% public shareholding rule – idbi bank privatization government sticking to December 16 timeline for receiving bids – News18 Hindi

New Delhi. The central government has sought a concession from the market regulator Securities and Exchange Board of India (SEBI) for IDBI Bank. According to sources in CNBC TV-18, the government has asked SEBI to continue the exemption given to IDBI Bank from the rule of minimum 25 per cent public shareholding even after its privatisation.

According to sources, the government wants to adhere to the December 16 deadline for submitting bids for IDBI Bank. If SEBI allows the government and Life Insurance Corporation of India (LIC) to be considered as public shareholders, then the minimum public shareholding conditions will automatically be followed.

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Minimum 25% public shareholding mandatory within 3 years of listing
According to SEBI rules, a minimum of 25 per cent public shareholding is mandatory for all companies listed in the stock market within 3 years of listing. Government companies are exempted from this rule. The government has the largest stake in IDBI Bank. Therefore it is exempted from the rule of public shareholding.

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Government and Life Insurance Corporation of India together hold 95 percent
The government and the Life Insurance Corporation of India together hold 95 per cent stake in IDBI Bank. RBI treats IDBI Bank as private sector bank with effect from January 21, 2019 for regulatory matters. In January 2019, Life Insurance Corporation of India acquired a majority stake in IDBI. The central government has already infused Rs 27,000 crore in IDBI Bank between April 1, 2010 and March 31, 2021.

Tags: IDBI Bank, Life Insurance Corporation of India (LIC)

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