city New Delhi India 2020 city New Delhi India

RBI directs HDFC to reduce stake in HDFC Ergo, HDFC Life to 50% or below

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NEW DELHI : The Reserve Bank of India has directed HDFC Limited to bring down its stake in its subsidiaries HDFC Ergo and HDFC Life Insurance to 50 per cent or below.

The RBI has directed that post merger of HDFC Ergo Health Insurance Company Limited (formerly Apollo Munich Health Insurance Company) with HDFC Ergo General Insurance Company, subsidiaries of the corporation, the stake of the corporation in the merged entity should be brought down to 50 per cent or below within a period of six months from the merger.

HDFC said in a regulatory filing that it currently holds 51.15 per cent in HDFC Ergo Health and 50.48 per cent in HDFC Ergo, and based on the share exchange ratio, the corporation is entitled to 50.58 per cent stake in the merged

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