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

The initial public offering of over 316 million shares or 5% government stake is likely to hit D-street in March

Life Insurance Corporation
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BS Web TeamPTI New Delhi
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

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First Published: Feb 26 2022 | 2:44 PM IST

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