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LIC must pare ITC, L&T stakes to below 15% by Dec 2018: Irdai

Press Trust of India  |  Mumbai 

The regulator Irdai has reiterated that behemoth Corporation (LIC) has to bring down its stakes in and to below 15 per cent by December 2018.

These two are considered as non-strategic for LIC. While LIC holds 16.29 per cent stake in ITC, it holds 17.97 per cent stake in as of end June.

However, LIC is free to continue with its strategic in companies like (18.9 per cent), (40.3 per cent) and (22.9 per cent).

LIC has been holding these two companies on behalf of since UTI was broken up in the early years of the new millennium through Suuti or Specified Undertaking of Unit of India, along with stakes in

Suuti, which is managed by an administrator appointed by the Centre, lowered its stake in from 11.12 per cent to 9.10 per cent in February, with LIC picking up the stake for around Rs 6,700 crore via block deals.

"Since LIC has been buying out the Suuti disinvestments in these two scrips and the would have got the money, we have allowed LIC to reduce its stake in and to 15 per cent by December 2018," Nilesh Sathe, member (life, & investment), Irdai said here on the sidelines of an industry event organised by CII today.

"LIC can continue its strategic investment in other companies beyond 15 per cent as usual, particularly in and LIC HF," he added.

He further said "we don't want LIC diluting its investment in any company to create market disruption and so we are willing to consider case-to-case request from LIC to extend the timeline to bring its stake down to 15 per cent."

Sathe also said the Irdai will be coming out with broking regulation shortly, and a final decision is likely on the next board meeting scheduled for August 28.

The regulator has already issued a discussion paper on the issue which seeks to double capital requirement for different categories of brokers including direct, composite and reinsurance.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, August 07 2017. 22:48 IST