New Delhi: Minister of Finance Nirmala Sitharaman on Friday explained that the government would continue with the issue of the Mega Public Insurance Corporation of India (LIC) during the current financial year, with a schedule for the IPO proposed discussed during the meeting.
“Basically, we discuss the schedule for the proposed IPO and what the remaining problems need to be sorted,” said an official after the meeting.
FM held a detailed discussion with the Secretary DIPA Tuhin Kanta Pandey and LIC management.
The government is very banking on the IPO LAC to approach the 1.75-Lakh-Crore Rs Disinvestment Target for the current financial year, given that the sale of the company proposed, such as oil retailers Bharat Petroleum, it is impossible for the current fiscal.
While the market has been skeptical of public offering, which will be the biggest problem in the Indian market, the government wants to ensure that it passes before March.
But, this center needs to provide clarity in certain aspects, such as a surplus share or profit to be transferred to the shareholder pool.
Against 10% norms for other life insurance companies, LIC only has to transfer 5% of the surplus for shareholder funds, with the rest set aside for policyholders.
Likewise, the FDI regime must be harmonized because the current rules do not allow foreign participation in the giant run by the state.
The government will advance with the IPO from LIC at the current fiscal: FM
