There will be a change in the FDI policy for the disinvestment of LIC, the approval of the cabinet will be taken

The Department for Promotion of Industry and Internal Trade (DPIIT) will soon approach the Union Cabinet for changes in the FDI policy to speed up the disinvestment of the country’s largest insurance company LIC.

The Department for Promotion of Industry and Internal Trade (DPIIT) will soon approach the Union Cabinet for changes in the FDI policy to speed up the disinvestment of the country’s largest insurance company LIC.

The Department for Promotion of Industry and Internal Trade (DPIIT) will soon approach the Union Cabinet for changes in the FDI policy to speed up the disinvestment of the country’s largest insurance company LIC. DPIIT secretary Anurag Jain said the issue has been discussed with the Department of Financial Services and Department of Investment and Public Asset Management (DIPAM) and everyone has an opinion.

Jain said that now only the draft has to be prepared. He said that he would try to make a cabinet note soon after inter-ministerial consultations and get approval. It will happen very soon. He told that the Finance Minister has directed that disinvestment is to be completed during the current financial year, so we also have to work at the same pace.

Separate law for LIC

At present, as per the Foreign Direct Investment (FDI) policy, 74 per cent foreign investment is allowed in the insurance sector through the automatic route. However, these rules do not apply to Life Insurance Corporation of India (LIC), which is governed through a separate LIC Act.

As per SEBI norms, both Foreign Portfolio Investment (FPI) and FDI are allowed under public offering. Sources, however, said that since there is no provision for foreign investment in the LIC Act, the proposed IPO of LIC needs to be aligned with the SEBI norms regarding participation of foreign investors. The cabinet had approved the IPO of LIC in July last year and stake sale is planned in the current March quarter.

Jain informed that DPIIT is organizing the first Startup India Innovation Week from January 10. DPIIT has recognized more than 61,000 startups so far.

Let us tell you that before the IPO, there is a decline in the income of LIC. In the month of December, the new business premium income of Life Insurance Corporation has registered a decline of more than 20 percent. Last month, LIC’s new business premium collection fell 20.30 percent to Rs 11,434.13 crore. In contrast, the premium income of the remaining 23 life insurance companies operating in the country increased by 29.83 percent to Rs 13,032.33 crore in December 2021. In the same period a year ago, this income was Rs 10,037.72 crore.

(with PTI input)

read this also: Companies are re-implementing work from home for employees, new wave of corona became the reason

read this also: Jeep India Sale: 130% jump in Jeep sales, Audi expects better business this year

Source link

Leave your vote

Related Articles

Back to top button

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.