IDBI Bank-sponsored IDBI Mutual Fund has signed an agreement to transfer its schemes to LIC Mutual Fund, the bank said in an exchange filing today.
T.S. Ramakrishnan, the MD and CEO of LIC Mutual Fund, had stated in September that the fund house was in the early stages of purchasing IDBI Mutual Fund.
Due to the Securities and Exchange Board of India regulations (SEBI) prohibiting one promoter from owning more than 10% of two mutual funds, IDBI Mutual Fund has to be either sold or merged with LIC Mutual Fund.
In 2019, the promoter of LIC MF, Life Insurance Corp of India (LIC), acquired a majority share in IDBI Bank.
