Reduce stake in insurance subsidiaries to 50% or below: RBI to HDFC

HDFC's share price were down almost 8 per cent to Rs 1,512

The Reserve Bank of India (RBI) has asked mortgage lender Housing Development Finance Corporation (HDFC) to pare stake in its insurance subsidiaries to 50 per cent or below. HDFC owns majority stake (more than 50 per cent) in both HDFC Life Insurance and HDFC Ergo General Insurance.
 

In a statement to the exchanges, HDFC said the RBI had directed that, after the merger of HDFC Ergo Health Insurance with HDFC Ergo General Insurance, it had to bring down its stake in the merged entity to 50 per cent or below within a period of six months from the date of