InvestorQ : Why is government planning to allow FDI into Life Insurance Corporation?
Sam Eswaran made post

Why is government planning to allow FDI into Life Insurance Corporation?

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Moii Chavate answered.
4 months ago
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Actually, this is just an anomaly that the government will correct. Currently, foreign direct investment or FDI up to 74% is permitted in insurance through the automatic route. However, this does not apply to LIC since it is governed by a separate and dedicated LIC Act. The special FDI permission will allow global investors to participate in the IPO.

The success of the LIC IPO is the key if the government has to get close to its disinvestment target of Rs.175,000 crore for fiscal year 2021-22. The government is yet to decide whether it will sell 5% or 10% in the IPO, based on which the IPO could be close to around Rs.1 trillion. Institutional participation will be the key.

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