Tata Sons has bought back nonconvertible debentures (NCDs) worth Rs 3,000 crore from LIC, reported The Economic Times.
Tata Sons bought back NCDs in April at a price way higher than the market rate after objections raised by the insurer over its hurried conversion into a private company, the report said people with knowledge of the matter.
LIC was concerned that in a rising interest rate scenario, the bonds would sell at a discount if they needed to be offloaded urgently, the report said.
Also, the Insurance Regulatory and Development Authority of India (IRDAI) doesn’t allow insurers to subscribe to investments in private limited companies that are not regarded as secured, the report added.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Prajwal Revanna Sexual Assault Case: Activist raises concerns over political interference, delayed investigation in the matter
Apr 30, 2024 10:17 PM
Lok Sabha Election 2024: Baramati election outcome will decide the future of Pawar dynasty, says expert
Apr 30, 2024 10:08 PM
Lok Sabha elections 2024: Baramati to Mainpuri, key battles in phase 3
Apr 30, 2024 7:01 PM