Union Cabinet on Saturday approved a policy amendment allowing foreign direct investment of up to 20% in Life Insurance Corp of India (LIC), a move aimed at easing the listing of the state-run insurer, sources told PTI.
The amendment would allow foreign direct investors to buy up to 20% of LIC's shares through an automatic route.
The Department for Promotion of Industry and Internal Trade (DPIIT) had mooted the proposal after taking views from the finance ministry.
According to the current FDI policy, 74% foreign investment is permitted under the automatic route in the insurance sector. However, these rules do not apply to