New Delhi: Finance Minister Nirmala Sitharaman Made it clear on Friday that the government would go ahead with the mega public issue. Life Insurance Corporation of India ,LIC) During the current financial year itself, the proposed IPO timeline was discussed during a meeting.
“Basically, we discussed the timeline for the proposed IPO and what other issues need to be resolved,” an official said after the meeting. FM had a detailed discussion with Deepam Secretary Tuhin Kanta Pandey and LIC Management.
The government is heavily relying on LIC’s IPO to come close to its disinvestment target of Rs 1.75 lakh crore for the current fiscal, given the proposed sale of companies like the oil retailer. Bharat PetroleumIt is not likely to pass during the current financial year. While the market has been skeptical about the public offering, which will be the biggest issue in the Indian market, the government is keen to ensure that it happens before March.
But, the Center needs to provide some clarity on certain aspects, such as the share of surplus or profit that will be transferred to the pool of shareholders. Against the 10% norm for other life insurance companies, LIC has to transfer only 5% of the surplus to the shareholders’ fund, the rest to be set aside for policyholders. Similarly, foreign direct investment Governance will have to align as current rules do not allow foreign participation in the state-run behemoth.
“Basically, we discussed the timeline for the proposed IPO and what other issues need to be resolved,” an official said after the meeting. FM had a detailed discussion with Deepam Secretary Tuhin Kanta Pandey and LIC Management.
The government is heavily relying on LIC’s IPO to come close to its disinvestment target of Rs 1.75 lakh crore for the current fiscal, given the proposed sale of companies like the oil retailer. Bharat PetroleumIt is not likely to pass during the current financial year. While the market has been skeptical about the public offering, which will be the biggest issue in the Indian market, the government is keen to ensure that it happens before March.
But, the Center needs to provide some clarity on certain aspects, such as the share of surplus or profit that will be transferred to the pool of shareholders. Against the 10% norm for other life insurance companies, LIC has to transfer only 5% of the surplus to the shareholders’ fund, the rest to be set aside for policyholders. Similarly, foreign direct investment Governance will have to align as current rules do not allow foreign participation in the state-run behemoth.
,