IDBI Bank's proposed stake sale likely to run into regulatory hurdle

Sebi raises concern over low public float in the lender

The proposed stake sale in IDBI Bank by the government may run into a regulatory obstacle on the issue of minimum public shareholding.

The Centre and the Securities and Exchange Board of India (Sebi), the market regulator, may be at odds over a minimum public shareholding in the lender.

Sebi is concerned over the low public float in the lender and the proposed strategic disinvestment may extend the road map to achieve this, a senior regulatory official privy to the discussion told Business Standard.

The government has sought a special dispensation from Sebi with regard to the public float in IDBI Bank. However,