Why ULIP mis-selling has become rampant ?

The Life Insurance Corporation of India (LIC) has increased its stake in Vedanta by acquiring over 61 lakh shares in the company during the March quarter.

The latest shareholding data showed that LIC held 5.75% stake in the company as of March 31 against 5.58% in the preceding quarter ended December 31. Shares of the company traded 0.26% higher at Rs 228.45 at around 12.17 pm (IST), while the benchmark BSE Sensex traded 0.22% higher at 48,054 at around the same time.

Foreign portfolio investors also raised their stake to 16.27% from 16.06% earlier. However, mutual funds cut their stake to 3.94% from 5.56%.

In another update, Anil Agarwal-led Vedanta Resources recently sweetened offer to buy back 17.5% share in its Indian flagship firm was subscribed 57.5 per cent, helping it raise its stake to about 65%.

The voluntary open offer to buy 65.1 crore shares in Vedanta Ltd at Rs 235 apiece received offers for 37.42 crore shares or 57.49% of the offer size, according to stock exchange data.

The subscription was till 15.30 hrs on April 7 — the last date of the open offer.

Vedanta Resources had raised the open offer price last month after its bid in January to buy up to 10% in Vedanta Ltd at Rs 160 apiece was not received enthusiastically.

Of the bids received, foreign institutional investors (FIIs) offered 20.83 crore shares while mutual funds offered 6.38 crore shares. Corporates offered 7.04 crore shares and individual investors tendered 1.6 crore shares, according to information on available on BSE.

Going by the shares tendered, the open offer will cost Vedanta Resources Rs 8,794.37 crore.