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Govt to retain management control in LIC after listing: Sitharaman
1 min read.Updated: 03 Mar 2020, 05:46 PM ISTPTI
LIC IPO would be brought out after necessary legislative changes and regulatory approvals, says Union finance minister
Nirmala Sitharaman also says LIC is not losing its market share
NEW DELHI :
The government on Tuesday said it will continue to retain the management control of LIC and safeguard the interest of policyholders even after listing of the insurance behemoth through initial public offering (IPO) on stock exchanges.
In the Budget Speech 2020-21, Finance Minister Nirmala Sitharaman announced that Life Insurance Corporation of India (LIC), a fully-owned government undertaking, will be listed.
According to data published by the Life Insurance Council, LIC has a market share of 77.61% in number of policies and 70.02% in first year premium income as on January 31, 2020.
Meanwhile, Minister of State for Finance Anurag Thakur in another reply said the government has given in-principle approval for strategic disinvestment of 34 central public sector enterprises, including subsidiaries, units and joint ventures.
Strategic disinvestment implies sale of substantial portion of the government shareholding of a CPSE along with transfer of management control.