Government approves 20% FDI in Life Insurance Corporation of India

Author: Nishu February 26, 2022

Potential investors in LIC's huge IPO upset over government control of the insurer

The move will expand the investor base for LIC’s IPO amid volatility in the market.

The government on Saturday approved changes to India’s foreign direct investment (FDI) policy to allow global investors to participate in the initial public offering of shares of Life Insurance Corporation of India (LIC), which is to be launched soon. are supposed to.

Government sources said foreign investors will now be able to invest up to 20 per cent in LIC’s shares under the automatic route. FDI in insurance enterprises is already allowed up to 74% under the automatic route, but the policy was silent on foreign equity investment in the country’s largest insurer LIC, a statutory corporation set up under an Act of Parliament.

An official source said, “As per the extant FDI policy, the FDI limit for public sector banks is 20% on the government approval route, hence it has been decided to allow foreign investment up to 20% for LIC and other such bodies.” Has gone.” Stating that approval has been made automatic for LIC investors to expedite capital raising plans.

The amendment to the FDI policy comes less than two weeks after the draft Red Herring Prospectus (DRHP) for LIC’s share sale was filed with the stock market regulator. Government is selling its 5% stake in LIC, 10% of these shares are reserved for policy holders of LIC and other 5% are reserved for employees.

The government is keen to kick off the listing process of LIC, which has an embedded value of ₹5.4 lakh crore, before the end of the financial year, as proceeds from share sale are crucial to meet the disinvestment target for the year, putting it down to Rs. has been modified. ₹ 1.75 Lakh Crore to ₹ 78,000 Crore.

Though the market has been rocked since the filing of LIC’s DRHP, Finance Minister Nirmala Sitharaman had indicated earlier this week that the government was going ahead with the IPO.

“Is the market condition favorable for LIC (listing), if it is good for LIC, then it is good for everyone else. If there are unfavorable conditions for LIC, it is also opposite for the rest,” she had said on Tuesday, adding that volatility in the financial market was triggered by overseas developments like the Ukraine crisis.

26 February, 2022, 7:43 pm

Tags: IPO
News Cinema on twitter News Cinema on facebook

Saturday, 26th February 2022

More Stories
Ex-MSNBC host Keith Olbermann claims he used to date Sen. Kyrsten Cinema
Asked About Brahmastra 2 Rumours, Hrithik Roshan Said This
OECD expects Reserve Bank of Australia to hike cash rate to 3.6 per cent
Ex man who dumped her for Ukrainian refugee ‘wouldn’t have him back in a million years’
Bondi studio unit queue lays bare reality of Australia’s rental crisis
Happy Navratri 2022: Wishes, Quotes and Whatsapp Wishes
Optus cyber attack: Why data hack was a simple security breach
Giants’ Promising Start Fades Under Cowboys Pressure
Family of Melbourne rollercoaster victim Shylah Rodden slam decision to RE-OPEN the ride
California will BAN all new gas-fueled furnaces and heaters by 2030 to cut ozone levels
Australians reveal what they love most about Bali
Career criminal turned face of NYC’s lax bail reforms arrested after shooting outside church
Artemis I Moon Rocket Departs Launch Pad 39B Ahead of Hurricane Ian – Artemis
Relief for SRK as SC upholds dismissal of Vadodara mob case
The Remaking of the Seattle Mariners
Western Australia bans plastic coffee cups from February 2023
Melbourne woman claims she thought her partner had won $10.4 million in bungled Crypto refund
China’s secret plot to make Australia dependent on it for electric cars as it is for everything else
Navratri 2022, Day 2 Puja: Brahmacharini Devi blesses her devotees with peace!
NASA Smashes Into an Asteroid, Completing a Mission to Save a Future Day
Video posted to Instagram and Reddit shows a gunman pointing his gun to the head of a man
Goldman Sachs fires mid-level bankers after dishing out bonuses and hiking salaries during pandemic
Optus data breach: Bizarre twist as hacker apologises to telco and claims they will not sell data
Trucks arrive in the Bronx to begin construction of huge tent city for 1,000 illegal immigrants
Colorado mom-of-two is missing after reaching summit of Mount Manaslu
Just like ‘Armageddon’, NASA spacecraft crashes into asteroid in first planetary defense test
Biogen Agreees to Pay $900 Million to Settle Lawsuit Over Kickbacks
NASA space boffins hit an asteroid seven million miles from Earth last night at 15,000mph
Italy’s Hard-Right Lurch Raises New Concerns in Washington
A $52 ​​Billion Proposal Aims to Protect New York Harbor From Storm Surges
Welcoming in a new era! King Charles III’s new cypher is released
Murdered Georgia mom Debbie Collier ‘calmly’ shopped less than 24 hours before her body was found
Biden’s Support for Iran Protesters Comes After Bitter Lessons of 2009
Teenager wielding ‘black rifle’ that was – an Airsoft gun is shot dead by LAPD officer outside home
Boris Johnson allies hit back as MPs dismiss claims that Partygate probe was ‘fundamentally flawed’
Hurricane Ian’s Uncertain Path Keeps Much of Florida on Alert
Crazy moment man slaps BEAR to protect his girlfriend and dogs
Trump White House Called Capitol Rioter on Jan. 6, Book Says
King Charles Bank Notes Won’t Circulate Until Mid-2024
Celtics Players Say They Were ‘Shocked’ by Coach’s Suspension
Hurricane Ian tracker live: Path updates and latest from Florida
Text messages show Meadows had direct contact with operative who was trying to seize voting machines