New Delhi: Ahead of the planned public issue, the government on Saturday allowed foreign direct investment of 20%.foreign direct investment) by automatic route in Life Insurance Corporation.
The move also signals that the government is keen to go ahead with the insurance giant’s mega initial public offering, despite choppy markets in the wake of Russia’s invasion. Ukraine,
While the government allows 74% FDI in the insurance sector, foreign investment was not allowed LIC, which is governed by a special statute. Now the government has sought to bring in parity in terms of allowing foreign inflows before IPOs, but aligning the rules with those applicable to public sector banks.
The government is keen to complete the listing of LIC by the end of March as part of its efforts to raise revenue and close the year with a fiscal deficit of 6.9% of GDP. Although recent developments in Ukraine have brought some uncertainty about the timing, the government and bankers are proceeding with a roadshow for the issue.
While a major part of the issue is proposed to be earmarked for retail investors and policyholders, foreign investors are also expected to invest a substantial amount in LIC.
Government sources said that central cabinet The meeting on Saturday also approved some other changes in the FDI regime as part of efforts to simplify the mechanism and make it attractive for foreign investors to invest in the country.
The details of the revised regime will be notified in the next few days. An official source said the changes are “to provide greater clarity and an updated, consistent and easily understandable FDI framework”.
“The measures taken by the government along with FDI policy reforms, investment facilitation and ease of doing business have contributed to attracting record FDI inflows into India in recent times,” an official said.
FDI inflows hit a record high of $74.4 billion during the last financial year as mega deals were involved Reliance Jio flow increased. The latest data released by the Ministry of Commerce and Industry showed a decline of 16% in FDI inflows during April-December 2021 and was estimated at $43 billion as compared to $51.5 billion during the same period last year.
The move also signals that the government is keen to go ahead with the insurance giant’s mega initial public offering, despite choppy markets in the wake of Russia’s invasion. Ukraine,
While the government allows 74% FDI in the insurance sector, foreign investment was not allowed LIC, which is governed by a special statute. Now the government has sought to bring in parity in terms of allowing foreign inflows before IPOs, but aligning the rules with those applicable to public sector banks.
The government is keen to complete the listing of LIC by the end of March as part of its efforts to raise revenue and close the year with a fiscal deficit of 6.9% of GDP. Although recent developments in Ukraine have brought some uncertainty about the timing, the government and bankers are proceeding with a roadshow for the issue.
While a major part of the issue is proposed to be earmarked for retail investors and policyholders, foreign investors are also expected to invest a substantial amount in LIC.
Government sources said that central cabinet The meeting on Saturday also approved some other changes in the FDI regime as part of efforts to simplify the mechanism and make it attractive for foreign investors to invest in the country.
The details of the revised regime will be notified in the next few days. An official source said the changes are “to provide greater clarity and an updated, consistent and easily understandable FDI framework”.
“The measures taken by the government along with FDI policy reforms, investment facilitation and ease of doing business have contributed to attracting record FDI inflows into India in recent times,” an official said.
FDI inflows hit a record high of $74.4 billion during the last financial year as mega deals were involved Reliance Jio flow increased. The latest data released by the Ministry of Commerce and Industry showed a decline of 16% in FDI inflows during April-December 2021 and was estimated at $43 billion as compared to $51.5 billion during the same period last year.
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