LIC exempted from public stake rule

New Delhi, Dec 22, 2023

The government has granted a one-time exemption to LIC to achieve 25% minimum public shareholding (MPS) within 10 years, the state-owned insurer said on Thursday. The country's largest insurer LIC was listed in May 2022. The government had sold over 22 crore shares, or a 3.5% stake in LIC, through an IPO. The government currently holds 96.5% stake in the company.

Earlier this year, the government had amended the regulation so that listed state-run companies, including banks, will not need to comply with the rule requiring an MPS of 25% even after their privatisation, if the government decides so "in public interest". The exemption to the MPS rule was earlier available only to government-controlled companies.

[The Times of India]