Federal government is thinking about enabling 20 per cent foreign institutional investment in LICThe government is thinking about permitting foreign institutional financial investment (FII) of up to 20 percent in Life Insurance Coverage Corporation (LIC), according to a government source.The listing of LIC is set to be India's biggest ever IPO, with the federal government aiming to raise as much as Rs 90,000 crore from its stake sale.The Union Cabinet had recently authorized the disinvestment of equity in LIC and the process is on to designate merchant lenders to introduce the IPO.The federal government has for the second time invited quotes from law firms to encourage it on the mega initial public offering of LIC.A panel headed by Finance Minister Nirmala Sitharaman will select the size of the share sale.For LIC's IPO, the Centre had actually changed the LIC Act of 1956.
After the modification, like any other noted business, the corporation, now governed by the Companies Act and markets regulator Act (post-IPO), needs to prepare its quarterly balance sheet with revenue or loss figures and make public, essential developments.