While, the government is planning to sell a part of its holding in the Life Insurance Corporation (LIC), the employees of the financial institution are against the move. The All-India Life Insurance Employees Federation is of the opinion that the move is not in the interest of the public, since the institution has grown only because of the trust of its policy holders and agents. If the Government’s stake in the financial institution is diluted, its policy holders will lose their trust in LIC.
While it is not clear as to how much of its stake the Government will sell, it is anticipated that a majority stake will be sold. As a result, LIC will not longer hold the status of a public-sector organisation.
The listing of LIC is expected to be completed in a year’s time. Its issues will be offered only after the required changes in regulations are brought about and approval of the Securities and Exchange Board of India (SEBI) is obtained. Certain amendments to the LIC Act of 1956 will be required before the Corporation can go public.
An inter-ministerial committee will be set up to look into the listing process. The committee will have representatives of the Law and from the Departments of financial services, investment and public asset management, who will work on various parameters of the IPO, which is likely in the second half of financial year 2021.
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