Life Insurance Corporation of India (LIC) has crossed the 5% shareholding threshold in REC Limited following an open market purchase on September 7, 2026. The acquisition triggers a mandatory disclosure under SEBI’s takeover regulations.

The insurer bought 9,93,000 equity shares carrying voting rights. This transaction increased its aggregate holding from 13.15 crore shares to 13.25 crore shares.

Shareholding Details

Prior to the transaction, LIC held 13,14,87,799 shares, representing 4.993% of the total voting capital. The new purchase added 0.038% to its stake.

The total equity share capital of REC Limited remained unchanged at 26,33,22,40,000 shares. The disclosure was filed with the Bombay Stock Exchange and National Stock Exchange on September 8, 2026.

What the Numbers Show

The acquisition was executed via market purchase rather than off-market transfer or preferential allotment. The move pushes LIC’s stake just above the 5% regulatory reporting line, indicating continued institutional interest in the rural electrification lender without a significant change in overall capital structure.

REC Limited has issued ₹500 crore of corporate bonds through India’s first pilot program for tokenized securities. The issue was oversubscribed approximately 8 times, reflecting strong investor demand for digital asset infrastructure.

The Rural Electrification Corporation (REC) executed the issuance under the Securities and Exchange Board of India (SEBI) Regulatory Sandbox Framework. This pilot marks a structural shift in debt market operations by introducing atomic Delivery-versus-Payment (DvP) settlement on a permissioned distributed ledger.

Issue Structure and Market Response

The bond issue consisted of a base size of ₹100 crore with an over-subscription option (green shoe) of ₹400 crore. Bidding took place on the electronic bidding platform of the National Stock Exchange of India Limited (NSE).

Investors bid for ₹796 crore against the ₹500 crore allotment. REC accepted the full amount at a coupon rate of 7.30% per annum for a tenor of 1 year and 9 months. The bonds are listed on both NSE and BSE Limited.

Operational Efficiency and Settlement

The tokenized mode enabled same-day pay-in, allotment, and listing of the bonds. Rajesh Kumar, Director (Finance) at REC, highlighted that the Demat 2.0 initiative leverages distributed ledger technology and CBDC-enabled settlement to eliminate settlement risks and operational friction.

The issuance involved coordinated efforts from SEBI, the Reserve Bank of India (RBI), and Market Infrastructure Institutions including NPCI, depositories, and stock exchanges. Kumar noted that this framework preserves existing investor protections while enhancing market efficiency through shared-ledger transparency.

What the Numbers Show

The 8x oversubscription ratio indicates significant liquidity depth for innovative debt instruments. By accepting the full ₹500 crore at a fixed 7.30% coupon despite higher bidding interest, REC secured cost-effective funding while validating the technical viability of atomic DvP settlement in Indian capital markets.