The Central Government has now taken another major step towards making largest insurer Life Insurance Corp. (LIC) IPO ready by bringing into effect from 7 July.
Twenty seven legislative changes made to the Life Insurance Corporation Act 1956 through this year’s Finance Act.
A top central government official said that the government is planning to bring in a clutch of anchor investors to invest up to rupees twenty five thousand crore in the shares of Life LIC in its planned mega Initial Public Offering (IPO).
The Central government has already started making presentations to global investors in roadshows to sound them out about the mega IPO that is in the works.
In last few months, centre has been taking several key steps to make LIC IPO ready including changing the legislative changes to LIC Act, giving nine-month tenure extension mandatory to LIC Chairman MM Kumar (whose term was to end on July 7) and was offering a good hike to employees.
According PTI report said that LIC will now have the post of Chief Executive Officer(CEO) and Managing Director instead of the Chairman position.
According to a report issued on July 7, CEO and Managing Director will be appointed by the Central Government under section 4 of the Act (LIC Act 1956).
The amendments have been made by the Department of Financial Services under the finance ministry by changing Life Insurance Corporation of India Pension Rules. Besides, some other rules under LIC Act, 1956 have been changed.
Besides, the Department of Economic Affairs under the finance ministry recently also changed the Securities Contracts Rules.