Axis Bank on Saturday said three entities classified as its promoters — United India Insurance Company, National Insurance Company and New India Assurance Company — will be re-classified as public category shareholders after the requisite regulatory approvals.

This comes after the three non-life insurers made a request to re-classify themselves as public from promoter under the terms of Regulation 31A of Sebi (Listing Obligation and Disclosure Requirements) Regulations, 2015. Under the above rule, any person can be allowed to be reclassified as a promoter or public by the stock exchanges only upon receipt of an application from the listed entity and it should be done after the satisfaction of various conditions.

For the period ended March 2021, the three non-life insurers held 0.74 per cent in Axis Bank.

Axis Bank was recently in the news when the government raised Rs 4,000 crore by selling a part of its stake in the bank held through the Specified Undertaking of the Unit Trust of India (SUUTI). The Centre had announced that it will sell up to 5.80 crore shares, or a 1.95 per cent stake held through SUUTI in Axis Bank at a floor price of Rs 680 apiece. This includes a base issue size of 3.60 crore shares and a greenshoe option to sell more than 2.20 crore shares. For the period ended March 31, 2021, SUUTI’s holding in the private sector lender stood at a little over 10.31 crore shares or 3.45 per cent.

Here, the private sector disclosed that it has identified the administrator of the SUUTI, Life Insurance Corporation of India (LIC), General Insurance Corporation, New India Assurance Company, National Insurance Company, United India Insurance Company, and Oriental Insurance Co Ltd as the promoters. Among them, the three entities had made a request for reclassification.

“The board at its meetings held this year on February 27, March 26, and April 28 has considered and approved the said requests, subject to the approval of the stock exchanges, statutory/regulatory authorities and the shareholders of the bank, it said…The reclassification will be effective post receipt of the aforesaid approvals,” Axis Bank said in a regulatory filing.

In a discussion paper released recently, the market regulator had proposed to replace the concept of promoter or promoter group to “person in control” from promoter group. It said that there have been instances where shareholders or founders who have no control over a firm are continued to be classified as promoters.

On Friday, shares of the lender closed at Rs 730.70.