LIC sold 1,92,49,974 shares of Asian Paints
through open market, which represents ~2% stake of Asian Paints.
With the sale of these shares, LIC's stake in Asian Paints has now come down to 3% from 5% earlier, as per a regulatory filing by LIC.
The filing did not disclose the sale value. LIC sold the shares over January 9-June 24, 2019.
On Monday, LIC trimmed its stake by 2% each
in Axis Bank and BHEL.
According to the Insurance Regulatory and Development Authority of India (IRDAI), an insurance company cannot hold more than 15% equity stake in one single company. This rule has been in place to avoid concentration risk.
LIC had been asked to avoid having high exposure to banks in terms of equity, mainly owing to the fact it holds 51% in IDBI Bank which has been allowed by special dispensation of the IRDAI.
Asian Paints Ltd ended at Rs1,363.20 down by Rs13.25 or 0.96% from its previous closing of Rs1,376.45 on the BSE.