Up to 10 percent of the proposed IPO of Life Insurance Corporation of India (LIC), the country's largest insurance company, will be reserved for the insured. Minister of State for Finance Anurag Thakur told the Rajya Sabha on Tuesday that the management and ownership of the company will remain in the hands of the government even after the initial public offer (IPO) so that the interests of the insured will be protected.
Thakur said that in the Finance Bill, 2021-22, it is proposed that up to 10 percent of the total size of LIC IPO should be reserved for the insured on a competitive basis. In the budget presented on Monday last week, Finance Minister Nirmala Sitharaman said that the IPO of LIC will be launched in the financial year starting from April 1st. For this, the LIC Amendment Act has been made part of the Finance Bill, so that necessary legislative approval can be obtained for its IPO.