The clearance removes the key regulatory gate for ICICI Prudential AMC to accumulate a near-10% position, enabling it to become a significant shareholder without breaching RBI ownership limits. For IDFC First Bank, the approval expands the pool of eligible long-term institutional capital, which can support future fund-raising and improve shareholding stability. For other investors, it signals RBI’s willingness to permit large AMC stakes in private banks when routed through regulated entities and within the 9.99% threshold.