The deal would help the insurance behemoth to enter the banking space and would provide business synergies despite the IDBI Bank's stressed balance sheet.
Mergers and acquisitions beyond a certain threshold require the approval of the Competition Commission of India (CCI), which keeps a tab on unfair business practices across sectors.
In August, the government gave its nod for the LIC's proposed purchase of up to 51 per cent stake in the bank.
With the deal, the insurer would have access to around 2,000 branches of the bank through which it can sell its products.
Last month, the LIC announced an open offer to buy 26 per cent stake from shareholders of the bank.
The open offer, wherein shares are to be acquired at a price of Rs 61.73 apiece, would commence from December 3.