INSUBCONTINENT EXCLUSIVE:
The government expects to come out with the LIC IPO by the end of present fiscal.The government is mulling enabling foreign direct financial
investment (FDI) in the country's biggest insurance provider LIC, a relocation which would help overseas financiers participate in the
business's proposed mega IPO, sources said
The proposal is under discussion between the Department of Financial Services and Department of Investment and Public Property Management
Discussions have been going on for the proposition for the last couple of weeks
It would likewise opt for inter-ministerial discussions and would likewise need Cabinet nod, a source stated
According to the existing FDI policy, 74 percent foreign financial investment is allowed under the automatic route in the insurance coverage
These guidelines do not apply to the Life Insurance Coverage Corporation of India (LIC), which is administered through a separate LIC Act.As
per Sebi rules, both FPI and FDI are allowed under public deal
Sources said because LIC Act has no arrangement for foreign investments, there is a need to align the proposed LIC IPO with Sebi norms
relating to foreign investor participation
The Cabinet had in July approved the going public (IPO) of LIC.The DIPAM had in January appointed actuarial firm Milliman Advisors LLP India
to evaluate the ingrained value of LIC ahead of the IPO, which is promoted to be the biggest public issue in Indian business history.The
government anticipates to come out with the LIC IPO by the end of present financial
Up to 10 per cent of the problem size would be reserved for policyholders
The federal government has currently brought in the needed legislative changes in the LIC Act for the proposed IPO.Deloitte and SBI Caps
have actually been selected as pre-IPO deal consultants
As many as 16 merchant lenders remain in the race to manage the mega initial public offering
These lenders will be making a discussion prior to DIPAM during the week.Seven worldwide lenders, consisting of BNP Paribas, Citigroup
Global Markets India and DSP Merrill Lynch Ltd (now called BofA Securities), will make discussions
The listing of LIC will be essential for the government to satisfy its disinvestment target
The government aims to mop up Rs 1.75 lakh crore in the present financial from minority stake sales and privatisation.Of the Rs 1.75 lakh
crore, Rs 1 lakh crore is to come from offering the government's stakes in public sector banks and financial institutions
The remaining Rs 75,000 crore would come as CPSE disinvestment invoices.
