LIC gets RBI approval to acquire 9.99% stake in HDFC Bank
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The Reserve Bank of India (RBI) has accorded its approval to LIC for acquiring aggregate holding up to 9.99 per cent of the paid-up share capital or voting rights of HDFC Bank Limited.
The approval has been granted with reference to the application submitted by LIC to RBI.
The aforesaid approval granted by RBI is subject to the conditions mentioned therein, including compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, provisions of the regulations issued by the Securities and Exchange Board of India, and any other guidelines, regulations and statutes as applicable.
LIC has been advised by RBI to acquire the aforesaid major shareholding in the Bank within a period of one year, i.e., by January 24, 2025.
Further, LIC must ensure that the aggregate holding in the Bank does not exceed 9.99 per cent of the paid-up share capital or voting rights of the Bank at all times.
