LIC IPO: Irdai raises investment limit for insurers in BFSI sector to 30%

This could free up more funds to invest in the largest IPO, say industry insiders

The Insurance Regulatory and Development Authority of India (Irdai) on Friday raised the investment ceiling for insurance companies in the banking, financial services, and insurance (BFSI) sector to 30 per cent from 25 per cent of their investment corpus. The move also comes ahead of the Rs 21,000-crore initial public offering (IPO) of Life Insurance Corporation of India (LIC).

The move paves the way for further investment by insurers in the BFSI space. Industry players said the existing sectoral investment cap of 25 per cent has been fully utilised by most insurance firms. Some large private sector insurers plan to subscribe