IDBI Bank Signs Pact To Transfer Mutual Fund Schemes to LIC MF
Moneylife Digital Team 30 December 2022
IDBI Bank on Friday said it has signed an agreement to transfer schemes of IDBI Mutual Fund to LIC Mutual Fund. "In terms of Regulation 30 of the  (LODR) Regulations, 2015, we hereby advise that on December 29, 2022, a Scheme Transfer Agreement (STA) has been signed between IDBI Mutual Fund and LIC Mutual Fund for transfer of schemes of IDBI MF to LIC MF to comply with regulation 7B of  mutual fund regulations," IDBI Bank said in an exchange filing. 
IDBI Bank, the parent of IDBI MF, is majority-owned by LIC (Life Insurance Corporation). SEBI (Securities and Exchange Board of India) rules bar a single promoter from owning more than 10% stake in two asset management companies (AMCs). Hence, there were either attempts to sell IDBI Mutual Fund or merge the assets with LIC Mutual Fund. There were at least two unsuccessful attempts to sell IDBI Mutual Fund and it has resulted in the merger with a company owned by the same parent. LIC MF manages assets over Rs18,000 crore, while IDBI MF has AUM of just over Rs3,800 crore. 
While LIC has a larger presence in the debt and passive equity products space, IDBI MF is strong in the actively managed equity funds space. A few schemes in the equity space—large cap, large and midcap, tax saver and flexi cap—are common between the two. IDBI MF has focused, value, mid-cap, health care and small-cap schemes, which are not present in the LIC portfolio.
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