Central government took this big decision on LIC’s IPO, FDI approved

Investors are eagerly waiting for LIC’s IPO. The government has said that LIC’s IPO will come in March. The Union Cabinet on Saturday allowed foreign direct investment (FDI) of up to 20 percent through the automatic route in LIC, which is preparing to bring an IPO.

Let us tell you that the meeting held under the chairmanship of PM Modi will facilitate
the disinvestment of the country’s largest insurance company with this move of the government. The decision in this regard was taken in the cabinet meeting chaired by Prime Minister Narendra Modi.

Government approves listing The
government has approved listing of LIC shares in the stock market through IPO. Foreign investors may wish to participate in this mega IPO, however there is no special provision for foreign investment in LIC under the extant FDI policy, which is a statutory corporation constituted under the LIC Act, 1956.

Foreign investment is 20 percent.
At present, as per the FDI policy, the foreign investment limit in public sector banks is 20 percent under the government approval route, so it was decided to allow foreign investment up to 20 percent in LIC and other such corporate bodies.

The IPO was approved in July last year,
a source said, adding that such FDI has been placed under the automatic route to expedite the process of raising capital. The Cabinet had approved the initial public offering of LIC in July last year. LIC has applied for this issue before the market regulator SEBI.