SEBI pulls up SBI Life for not complying with minimum public shareholding norms
Market regulator SEBI has pulled up SBI LifeNSE 0.44 % insurance for not complying with minimum public shareholding (MPS) norms and directed the insurer to be cautious in the future. SBI Life started as a 74:26 joint venture between public sector lender SBI and BNP Paribas NSE 1.96 % Cardif of France.
"The company and BNP Cardif may note that the dilution of shareholding beyond the permissible limit is not in compliance with provisions of the said circular and hence, such dilution would not be counted towards achieving MPS threshold," SBI Life said in a regulatory filing quoting the letter of Securities and Exchange Board of India (SEBI).
Further, it said, the company is advised to ensure that that the company achieves the 25 per cent MPS threshold by October 2, 2020. "The company and BNP Paribas Cardif are hereby advised to be cautious in future and ensure compliance with applicable provisions of the SEBI Rules and Regulations," it said.