According to CNBC TV-18, the central government seeks SEBI to extend IDBI Bank’s 25% minimum public shareholding (MPS) standard after privatisation. The channel reported on November 18 that the government was adhering to the December 16 timetable for accepting bids from IDBI Bank.

According to media reports, if the Securities and Exchange Board of India (Sebi) allows the government and LIC to be classified as public shareholders, the minimum public shareholding criteria will be automatically met.

Markets regulator Sebi requires all listed entities (excluding state-owned enterprises) to hold at least 25% public shareholding within three years of listing.

IDBI Bank is majority-owned by the government and quasi-government companies and is not subject to shareholding norms. Promoter LIC and the government jointly hold a 95% stake in the lender.

The Reserve Bank of India (RBI) has classified IDBI Bank as a private bank for regulatory purposes, effective January 21, 2019, after LIC acquired a majority stake in the bank. The government has fixed the average cost of share acquisition for the capital injection of Rs 27,000 crore in IDBI Bank between April 1, 2010, and March 31, 2021, at Rs 60 per share.