LIC IPO: Govt amends fee structure for legal advisors after failed attempt

DIPAM introduces "milestone payments" in RFP; the legal advisors were earlier supposed to get their fee "after successful and satisfactory completion of the transaction"

After the first attempt to appoint legal advisor for the initial public offering (IPO) of Life Insurance Corporation of India (LIC) failed, the government has amended the fee structure for law firms to make the offer attractive. 

The Department of Investment and Public Asset Management (DIPAM) has introduced “milestone payments” by amending its request for proposal (RFP) for engagement of legal advisors for the LIC IPO. Earlier, the legal advisors were supposed to get their fee “after successful and satisfactory completion of the transaction”.

Now, the successful law firm will receive 50 per cent of the fee after filing of