LIC to get listed on bourse

■ Continued from Page 1 complete independance in putting the governance framework including independant directors, nominee directors. Also considering the quality of assets of IDBI Bank, it remains to be seen how much an investor will be expected to pay for the troubled bank,” added Parekh.

“Discussion with respect to law ministry for legislative changes for LIC IPO has already begun,” said finance minister Nirmala Sitharaman at a press conference after presenting the Budget.

“Between LIC and IDBI Bank and other disinvestment as per guesstimates, Rs 90,000 crore could be raised. We will have to go back to parliament to get the nod for LIC stake sale… The government’s intention is to get out of IDBI Bank,” said Atanu Chakraborty (secretary) ministry of finance, Department of Economic Affairs.

“Listing of companies on stock exchanges discipline a company and provides access to financial markets and unlocks its value. It also gives opportunity for retail investors to participate in the wealth so created. The government now proposes to sell a part of its holding in LIC by way of Initial Public Offer (IPO),” said Sitharaman in her Budget speech.

Speaking about IDBI Bank, the finance minister said, “In the last few years, the government has taken concrete steps to bring our banking system to be robust. However, there is a need for greater private capital. Accordingly, it is proposed to sell the balance holding of Government of India IDBI Bank to private, retail and institutional investors through the stock exchange.”

Under Section 37 of The LIC Act, the government has guaranteed the sum assured with bonus in all LIC policies to ensure the availability of financial security to the family of the deceased. For the April to December 2019 period, LIC collected new premiums of `1.37 lakh crore, showing a 45.5 percent year-on-year (YoY) rise, its market share was 71 per cent. LIC Annual Report 2018-19 showed that the income from investments stood at `2.21