India’s Competition Commission of India (CCI) has granted its approval to LIC Mutual Fund Asset Management (LIC AMC) to buy IDBI Mutual Fund (IDBI MF) from IDBI Asset Management (IDBI AMC).

As part of the proposed deal, which was announced in January this year, LIC AMC will gain the rights to manage and administer the IDBI MF schemes.

LIC Mutual Fund Trustee (LIC TC) will also buy the rights of trusteeship of IDBI MF schemes from IDBI MF Trustee Company.

The deal will result in IDBI MF becoming part of LIC Mutual Fund (LIC MF), while LIC AMC will serve as asset manager for IDBI MF.

Besides, LIC TC will become the trustee company.

IDBI AMC will further buy a certain non-controlling shareholding in LIC AMC, through the acquisition.

At the time of announcing the deal, IDBI Bank said: “In terms of Regulation 30 of the (LODR) Regulations, 2015, we hereby advise that on 29 December 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 SEBI mutual fund regulations.”

In January 2019, LIC concluded the purchase of IDBI Bank, which is the sponsor of IDBI MF.

Even after the deal, LIC has been conducting its asset management activities through its own arm, LIC AMC, which runs as per the Securities and Exchange Board of India (Sebi) norms.