The foreign partner is looking to reduce its stake to meet the minimum public shareholding norm of 25 percent in listed entities
BNP Cardif, the foreign shareholder in SBI Life Insurance is looking to reduce its stake in the life insurance venture to meet minimum public shareholding norms.
Currently, the promoters -- State Bank of IndiaÂ and France-based BNP CardifÂ together hold 84.10 percent stake in the venture. Of this, SBI holds 62.10 percentÂ while the balance 22 percentÂ is with BNP Cardif.
For listed entities, the promoter stake has to be capped at 75 percent so that public shareholding is maintained at 25 percent. Newly-listed companies get two years to comply with the public shareholding norm.
BNP Cardif has confirmed it is considering a sale but is yet to make any firm decisions on the size, timing or nature of the potential reduction in its shareholding in theÂ venture.