HDFC hikes its stake in life co ahead of merger

Mumbai: HDFC has hiked its stake in HDFC Life to over 50%, making it a subsidiary. The move which comes ahead of the HDFC-HDFC Bank merger aims to comply with RBI guidelines that require banks to hold either over 50% or below 30% in insurance affiliates.The Competition Commission of India and the Insurance Regulatory and Development Authority of India have consented to HDFC’s holding more than 50% of the paid-up share capital of the life company. In a notice to the exchange, HDFC said that it has acquired 3.6 crore shares of the HDFC Life, equal to 1.69% of the company’s shares.