IDBI mandates bidders to seek MHA security clearance in first stage

New Delhi: In a first, the government has made it mandatory for interested buyers of IDBI Bank to provide details for security clearance from the Ministry of Home Affairs (MHA) in the first stage of the bidding process.

So far, in all instances of CPSE privatisation, the government would seek details regarding security clearance of the bidders at the second stage of the bidding process. This meant that bidders who qualified in the first or the Expression of Interest (EoI) round, were required to seek security clearance from the government while placing their financial bids. Inviting Expression of Interest (EoI) from bidders for buying the government and LIC's 60.72 per cent in IDBI Bank, the Department of Investment and Public Asset Management (DIPAM) said interested parties (IPs) who clear the 'Fit & Proper' assessment by RBI and the security clearance by the government/MHA shall be notified as the Qualified Interested Parties (QIPs).

Only the QIPs will get access to the data room of IDBI Bank for due diligence, following which they put in financial bids. The interested parties and its directors and shareholders holding more than 10 per cent, or who exercise significant influence, will have to submit a self-declaration regarding whether they are subject to preventive detention proceedings under the Public Safety Act or National Security Act, criminal investigation in which charge sheet has been filed in India or any other foreign country.

The DIPAM last week invited EoIs from prospective bidders of IDBI Bank offering to sell 60.72 per cent stake together with LIC.