On January 25, 2024 Thursday, the Reserve Bank of India granted approval to Life Insurance Corporation of India (LIC), a state-run insurer, for its application to acquire a 9.99% aggregate holding of the paid-up share capital in HDFC Bank. In accordance with Regulation 30 of the SEBI Listing Regulations, LIC, through an exchange filing, disclosed that it received a letter from the Reserve Bank of India dated January 25, 2024. The letter confirmed the RBI’s approval for LIC to acquire an aggregate holding of up to 9.99% of the paid-up share capital or voting rights of HDFC Bank Limited.
The granted approval is in response to LIC’s application to the RBI. The approval is subject to specified conditions, including compliance with 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), provisions of the Foreign Exchange Management Act, 1999, regulations issued by Securities and Exchange Board of India, and any other applicable guidelines, regulations, and statutes, as stated in the filing.
In accordance with RBI regulations, LIC is mandated to acquire the 9.99% stake within the specified year, with a strict adherence to ensuring that its holding remains below the 9.99% threshold at all times.
