Draw up plan to cut holdings in cos to 10%, Irda tells LIC

The Insurance Regulatory and Development Authority (Irda) has directed insurance behemoth Life Insurance Corporation (LIC) of India to chalk out a plan to reduce its stake in companies where it holds more than 10 per cent.

The regulator was expecting a response in 15-20 days, R Kannan, Irda member (Actuary), said.

Last year, Irda had said that the public sector insurer should pare down its holdings in companies to the prescribed limit of 10 per cent. “Now, when it (LIC) is closing its accounts, it should come out with a clear strategy for bringing its holding down (to 10 per cent). We expect LIC to come out with its plan in the next 15-20 days,” Kannan said.

Despite Irda’s directive, LIC has only marginally decreased its stake in a few Sensex-listed companies where it holds more than a 10 per cent stake in the last two quarters of the previous financial year.