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| LIC pares stake; holds above 10% limit in cos |
| Press Trust Of India / Mumbai Jul 27, 2009, 00:31 IST |
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Life insurance major LIC has marginally decreased its holdings in a few Sensex companies where it holds more than 10 per cent stake, according to BSE data.
According to the data, up to end-Q1 FY10 (June 30), LIC had decreased it stake in engineering major L&T from 17.44 per cent in the last quarter of the previous financial year to 17.38 per cent in the first quarter of FY10.
In ITC, in which LIC was holding 13.61 per cent stake as on March 31, 2009, it reduced its holding to 13.52 per cent as on June 30. Similarly, LIC decreased its holding in cement major ACC to 16.78 per cent in the first quarter of FY10 whereas it held 16.83 per cent stake as on March 31.
The life insurance major also effected a reduction in car manufacturer Maruti Suzuki and Tata group company Tata Power. LIC brought down its stake from 11.05 per cent in Maruti Suzuki in the last quarter of the previous financial year to 10.07 per cent in the first quarter of this financial year. Its stake in Tata Power was reduced to 10.11 per cent during the first quarter as against 11.71 per cent in Q4 of FY09, the data said.
During the first quarter, the life insurer slightly increased its stake in Grasim to 12.59 per cent compared to 12.57 per cent in the fourth quarter of the last financial year.
Similarly, it increased stake in Hindalco to 10.46 per cent in first quarter of FY 10 from 10.42 per cent in the fourth quarter of the previous financial year, the BSE data said. Both the companies are Aditya Birla group companies. An increase in stake was effected in Tata Motors, wherein LIC increased its stake to 11.07 per cent in Q1 FY10 from 10.27 per cent as at March 31, 2009.
During the first quarter of this financial year, LIC, however, maintained its holding in two companies — Tata Steel and Mahindra and Mahindra at 11.68 per cent and 17.30 per cent, respectively.
Insurance regulator, Irda, had said last year that LIC should pare its holdings in companies where it holds more than a 10 per cent stake, thereby capping the limit at 10 per cent. Early this year, Irda Chairman, J Hari Narayan, gave LIC a reprieve from bringing down its stake in companies where it holds more than 10 per cent in the immediate-term.
Irda Member (Actuary), R Kannan, said the regulator had asked LIC to come out with a clear plan for compliance with the norms for reduction of its stake in companies where it holds more than 10 per cent.
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