LIC board approves investment plan to buy 51% IDBI Bank stake
Earlier in June 2018, insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI) approved LIC's proposal to increase its stake in troubled IDBI bank with certain terms and conditions. As per current regulations, an insurance company cannot own more than 15 per cent in any listed financial firm. However, it can own more stakes of a listed firm by seeking permission from IRDAI.
The Board of Directors of state-run Life Insurance Corporation (LIC) today approved the proposal to acquire 51 per cent stakes of the debt-stressed IDBI Bank. Image source: Reuters