Tata Sons has bought back nonconvertible debentures (NCDs) worth Rs 3,000 crore from LIC, reported The Economic Times.

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Tata Sons bought back NCDs in April at a price way higher than the market rate after objections raised by the insurer over its hurried conversion into a private company, the report said people with knowledge of the matter.

LIC was concerned that in a rising interest rate scenario, the bonds would sell at a discount if they needed to be offloaded urgently, the report said.

Also, the Insurance Regulatory and Development Authority of India (IRDAI) doesn’t allow insurers to subscribe to investments in private limited companies that are not regarded as secured, the report added.