The Securities and Exchange Board of India (SEBI) has allowed the centre to reclassify its stake in IDBI Bank as “public” following the divestment, provided its voting rights do not exceed 15%, the bank said in a regulatory filing on Thursday.

In a letter to the Department of Investment and Public Asset Management (DIPAM), the regulator said it allowed for the relaxation of the reclassification under Sebi’s Listing Obligations and Disclosure Requirements (LODR). In addition, the buyer must comply with minimum public shareholding norms within one year of the acquisition.

The government must also specify in its offer letter to IDBI Bank shareholders that it intends to reclassify its holdings as “public”.

According to BSE shareholding data, the centre holds a 45.48% stake in IDBI Bank, while LIC holds 49.24%.

The government and LIC expressed interest in selling a 60.72% stake in the bank in October. To qualify, potential buyers must have a net worth of Rs 22,500 crore and report net profits in three of the past five years, DIPAM said.

DIPAM also allows foreign banks or funds, or investment vehicles incorporated outside India to bid for IDBI Bank. The RBI’s final approval will be based on an assessment of the buyer’s compliance with “fit and proper” standards.

According to earlier reports, IDBI Bank will continue to operate as an Indian private bank after the stake sale. Shares of IDBI Bank edged up 0.37% to Rs 54.85 on the NSE on Thursday.