The Insurance Regulatory and Development Authority of India rejected a proposal for Life Insurance Corp. of India to acquire an additional 15% stake in IDBI Trusteeship Services Ltd., The Economic Times reported Dec. 4, citing "a source with knowledge of the development."
The insurance regulator cited concentration of risk in one entity as the reason for rejecting the proposal, the source said.
IDBI Bank Ltd. owns a 54.70% stake in IDBI Trusteeship and is looking to sell its stake as part of its plan to shed noncore assets. LIC is a the second largest shareholder of the company with a 29.84% stake, while GIC Re holds a 14.92% stake.
LIC did not respond to an email from the publication.