IDBI Bank sells remaining 0.21% stake in NSE

Industry:    2020-09-09

Lender IDBI Bank said on Tuesday that it has sold its remaining 0.21 per cent stake or 10,25,683 shares of National Stock Exchange of India (NSE).

Recently, state-run Life Insurance Corporation of India (LIC) missed the Securities and Exchange Board of India (Sebi)’s August 28 deadline to divest a 4.9 per cent stake in the stock exchange.

LIC, the founding and largest shareholder in NSE, holds a 12.51 per cent stake.

While both IDBI and LIC held stake in the exchange, the shareholding threshold in NSE was breached when LIC acquired a 51 per cent controlling stake in IDBI Bank.

This led to the holding of trading members in NSE breaching the 49 per cent mark under the Stock Exchange and Clearing Corp. (SECC)’s norms. While LIC’s holding was earlier not considered to be of a trading member, with the stake buy in IDBI Bank, it was reclassified as a trading member.

Recent media reports have hinted that Rs 10,000-crore initial public offering (IPO) by NSE is close to getting regulatory approval.

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