The Bombay High Court is scheduled to hear a public interest litigation (PIL) today, seeking direction from the government and the insurance regulator to frame a law that restrains public sector insurance companies from investing in tobacco companies, besides ensuring that the present holdings of the insurance companies are divested.
While the petition talks about public sector insurance firms and tobacco companies, the issue is actually about Life Insurance Corporation’s (LIC’s) stake in ITC. That’s because public sector general insurance companies together hold just about 5 per cent stake in ITC (they have been progressively reducing their exposure mainly to shore
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