Securities and Exchange Board of India (SEBI) has approved recognition of government stake in IDBI Bank as public shareholding. SEBI has taken this decision after the government’s appeal. However, this new change will happen after the government’s stake sale in the bank.

After this, the voting rights of the government will also not be more than 15 percent. Further SEBI has directed the new buyer to comply with the minimum public shareholding norms within one year of the sale.

Whose share: Let us tell you that the government has 45.5% stake in the bank and the Life Insurance Corporation of India has 49.24% stake. LIC is currently the promoter of the bank. Government will sell 30.5% stake and LIC will sell 30.2% stake in IDBI Bank. After this sale process, the government will have 15 per cent stake in the bank.

The last date for submission of EOI to the Bank is Saturday. Once the government receives initial bids expressing interest from buyers, the Reserve Bank of India (RBI) will examine whether they meet the central bank’s fit and proper criteria.

The government is expecting multiple bids for IDBI Bank. US-based Carlyle Group, Fairfax Financial Holdings and DBS Bank may bid for the stake sale.