Govt may permit foreign direct investment in LIC ahead of mega IPO

Allowing foreign investors to invest in LIC would aid its listing, expected to be the largest initial public offering in India

The government is considering allowing foreign direct investment (FDI) in Life Insurance Corporation of India (LIC) to enable overseas investors to buy stakes in the insurer.

“Discussions on structuring the increase in foreign shareholding and the ceiling are ongoing and a decision is yet to be taken,” an official said.

FDI of up to 74 per cent is permitted in insurance companies, but LIC and other public sector insurance companies come under their own statutes. The current norms mandate foreign investors to seek permission from the Insurance Regulatory and Development Authority of India (IRDAI) if they pick up a stake larger than