Mumbai, July 8 -- Domestic institutions, including mutual funds and Life Insurance Corporation of India (LIC), hold the key to allowing Subhash Chandra-led promoter entities to increase their stake in Zee Entertainment Enterprises Ltd. That's when Norges Bank, the company's largest overseas investor, has given its assent.

LIC (4.49%), HDFC Mutual Fund (3.66%) and ICICI Prudential Mutual Fund (3.04%) together own over a tenth of the outstanding shares of Zee as of 31 March, making their decision crucial. HDFC Life Insurance (1.57%) is another significant shareholder.

Zee has intensified its outreach to canvass for support and convey the company's view on the warrants issue that will allow promoter entities to raise stake, said an industr...