LIC IPO: Insurer gets until Jan 2023 to dispose of 'other investments'

LIC is mandated to transfer those investments to shareholders' fund at amortised cost, 90 days after such investments are reclassified as "other investments", which it is yet to be undertaken.

Life Insurance Corporation (LIC) has received the insurance regulator’s nod for time till January-end 2023 to dispose of investments in pension, group and life annuity funds, which do not fall in the “approved investment” category.

Had the Insurance Regulatory and Development Authority (Irdai) denied more time to transfer the investments to shareholders’ fund at amortised cost, the loss that would have accrued in the profit and loss account (shareholders account) would have been Rs 5,365.83 crore as of September 2021, LIC said in its draft red herring prospectus (DRHP).

LIC is mandated to transfer those investments to shareholders’ fund at amortised cost,