Mumbai: The Foreign Investment Promotion Board, which rejected ICICI Bank''s proposal to divest 24 per cent in ICICI Financial Services, the holding company for the bank''s insurance joint ventures, review the case again after the bank submits a fresh application.

FIPB had rejected ICICI Bank''s proposal to divest 24 per cent stake in ICICI Financial Services in favour of foreign investors as a subsidiary could not take part in insurance business, the source said.

Regulation 2(g)(i) of the IRDA regulations said "Indian promoter" meant a company formed under the Companies Act, 1956 (1 of 1956), which was not a subsidiary as defined in section 4 of that Act, the source added.

The IRDA has backed ICICI Bank''s proposal to set up a holding company for its insurance ventures, saying for all practical purposes the parent bank will remain the promoter of the insurance ventures.

ICICI Bank has said it has a certificate from the IRDA to the effect that it will continue to be the promoter of ICICI Prudential Life Insurance and ICICI Lombard General Insurance even with the existence of the holding company.