ICICI Bank gets exemption from paring stake in insurance arms for 3 yrs

ICICI Bank Ltd. said it has got exemption from paring stake in its life and non-life subsidiaries to 30% for a period of three years.
A government notification exempted ICICI Bank from the provisions of Section 19(2) of the Banking Regulation Act, 1949 with respect to shareholding above 30% in ICICI Lombard General Insurance Company and ICICI Prudential Life Insurance Company Limited, for a period of three years, the bank said in a regulatory filing.
The central government, on the recommendation of the Reserve Bank of India, issued the notification on Sept. 9, 2020, it added.
Sub-section (2) of Section 19 of the Banking Regulation Act, 1949 provides that no banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of any amount exceeding 30% of the paid-up share capital of that company or 30% of its own paid-up share capital and reserves.
“As previously announced by ICICI Lombard General Insurance Company, it has proposed an acquisition of another general insurance business (Bharti AXA General), which if consummated would result in ICICI Bank’s shareholding in ICICI Lombard General Insurance Company Limited reducing to less than 50%,” it said