HDFC Ltd bought 0.7% additional stake in its subsidiary HDFC Life through open market transactions on Tuesday. The parent company already has about 48.65% stake in HDFC Life.The transaction was done at a weighted average price of Rs 667, bulk deals data revealed.Earlier on Tuesday, HDFC announced that the reverse merger of its banking subsidiary HDFC Bank will be effective July 1.”Almost all the approvals are in place, and we hope to complete the merger process effective July 1. The boards of HDFC and the bank are meeting separately on June 30 after office hours to clear and approve the merger, which will be effective July 1,” Chairman Deepak Parekh said.Effective July 13 or 14 or latest by July 17, HDFC shares will be trading as HDFC Bank shares. However, these dates are tentative and will depend on the completion of certain formalities.Once the deal is effective, HDFC Bank will be 100% owned by public shareholders, and existing shareholders of HDFC will own 41% of the bank. Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.Earlier this year, the Reserve Bank of India had granted HDFC Bank and HDFC select regulatory relief to smooth out the merger between the two organisations.The RBI has permitted HDFC Bank or HDFC Limited to increase the shareholding to more than 50% in HDFC Life Insurance Company Limited and HDFC ERGO General Insurance Company Limited prior to the effective merger date.Investments, including subsidiaries and associates of HDFC, have been allowed to continue as investments of HDFC Bank.Further, the RBI has also permitted HDFC Bank to continue holding HDFC’s stake in HDFC Education and Development Services Pvt Ltd, engaged in operating three education schools, for a period of two years from the effective date.