New Delhi: The government is considering allowing foreign direct investment (FDI) in Life Insurance Corporation (LIC), according to someone who is familiar with this problem, which can enable a single investor abroad to buy large shares in the company leading to Mega-IPO .
Any strategic investment will submit to a hat, although it is not clear at what level to be established, the person said, asking not to be identified as his personal deliberation.
Participants at the earlier meeting this month recorded the FDI 20% limit in the banks managed by the state, the person said.
Allowing FDI in LIC will allow what is called strategic investors such as large pension funds or insurance companies to participate in initial public offering, which are scheduled to be the largest in India.
Reserve Bank of India (RBI) defines FDI as a peg purchase of 10% or greater by individuals or entities based abroad.
Bankers who want to set the IPO LAC will make a presentation to the government on Thursday.
Administration of Prime Minister Narendra Modi – which has 100% of LIC – is looking at sales to help narrow the budget gap to 6.8% of gross domestic product in 20022.
The list can appreciate the LIC at $ 261.
Billion, based on its assets under management and Using the private sector insurance company as a benchmark, analyst at Jefferies India wrote in February records.
While FDI as much as 74% was permitted in most Indian insurance companies, the rules did not apply to LIC because they were a special entity created by parliamentary actions, said the person, added that the discussion about FDI was at first stage and no final decision had been achieved.
A spokesman for the Ministry of Finance could not be contacted immediately for comments.
BNP Paribas SA, Citigroup Inc.
and Goldman Sachs Group Inc.
are among seven foreign banks competing to manage IPOs.
Nine Indian companies include HDFC Bank Ltd and AXIS capital.
The government considers allowing FDI in LIC
