Business Standard

Sebi partially freezes LIC's voting rights in National Stock Exchange

State-owned life insurance giant deemed trading member; may have to divest holding to below 5 per cent


The private sector and non-financial entities constitute only 20 per cent of the total issuances, with the remaining being state-owned firms

Samie Modak Mumbai
Life Insurance Corporation of India's (LIC) acquisition of IDBI Bank has led to unintended consequences. The market regulator Securities and Exchange Board of India (Sebi) has partially frozen LIC’s voting rights in the National Stock Exchange (NSE). The reason being the 5-per cent shareholding cap on trading members. While LIC is not a trading member, following its acquisition of IDBI Bank — a trading member of NSE — it is deemed as one.

Sebi rules exempt a trading member to hold more than 5 per cent of the paid up capital of a stock exchange 'directly or indirectly'. A trading

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First Published: Sep 20 2019 | 2:56 PM IST

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