The Reserve Bank of India (RBI) has given approval to Life Insurance Corporation of India (LIC) to acquire up to 9.99% stake in HDFC Bank Ltd, the bank informed via a stock exchange filing.
“Pursuant to Regulation 30 of the SEBI Listing Regulations, we would like to inform you that the Reserve Bank of India (“RBI”) vide its letter dated January 25, 2024 addressed to Life Insurance Corporation of India (“LIC”), has accorded its approval to LIC for acquiring aggregate holding up to 9.99% of the paid-up share capital or voting rights of HDFC Bank Limited (“the Bank”),” the filing stated.
Notably, the approval has been granted with reference to the application made 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 Securities and Exchange Board of India, and any other guidelines, regulations and statutes as applicable,” the filing added.
LIC has been advised by RBI to acquire the shareholding in the Bank within a period of one year i.e. by January 24, 2025. Further, LIC also needs to ensure that the aggregate holding in the Bank does not exceed 9.99% of the paid-up share capital or voting rights of the Bank at all times.