LIC, SBI, Bank of Baroda get until Dec 2020 to bring UTI MF stake below 10%

Sebi to freeze shareholding if extended deadline not met

The Securities and Exchange Board of India (Sebi) on Friday gave time till December 2020 to Life Insurance Corporation of India (LIC), State Bank of India (SBI), and Bank of Baroda (BoB) to bring down their shareholding in UTI Mutual Fund (MF) to below 10 per cent. The market regulator said non-compliance would result in the freezing of their voting rights and excess shareholding. Sebi has also ordered a change in the board structure at UTI MF.

The Sebi order said the three public sector undertakings (PSUs) had failed to comply with the cross-shareholding norms even after 20 months. 

The order comes