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Cabinet allows up to 20% FDI in IPO-bound LIC under automatic route

The existing FDI policy did not prescribe any specific provision for foreign investment in LIC, which is a statutory corporation established under LIC Act, 1956

Life Insurance Corporation
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LIC on February 13 filed draft papers with Sebi for the sale of 5% stake by the government for an estimated Rs 63,000 cr

Asit Ranjan Mishra New Delhi
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Saturday approved a proposal to allow foreign direct investment (FDI) up to 20 per cent in Life Insurance Corporation through the automatic route. The decision is expected to open doors for foreign investors who are keen to participate in the upcoming initial public offering (IPO) of LIC scheduled for next month, considered to be India’s largest public offering.

“Other minor enhancements in the existing FDI Policy have also been carried out in order to provide an updated, consistent and easily comprehensible FDI framework. The FDI policy reform will further enhance Ease

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First Published: Feb 26 2022 | 3:45 PM IST

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