Govt gives nine-month extension to LIC Chairman
The government has approved the proposal of the Department of Financial Services for extending the term of MR Kumar from June 30, 2021 till March 13, 2022, the date when he completes three years.
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NEW DELHI: The government has given a nine-month extension to LIC Chairman M R Kumar till March next year in view of the insurer s proposed initial public offer towards the end of the current fiscal.
In her Budget Speech 2021, Finance Minister Nirmala Sitharaman said the Initial Public Offer (IPO) of LIC would be floated in 2021-22 as part of the ambitious Rs 1.75 lakh crore disinvestment target.
ISSUE DATE: March 22, 2021
UPDATED: March 15, 2021 12:48 IST
Illustration by Nilanjan Das
Its acronym, LIC, and its logo have been iconic symbols of financial security for Indians born before the new millennium. Even now, 290 million, or one in five, Indians are insured by the government-owned Life Insurance Corporation. It still controls 66 per cent of the country’s life insurance market even though private insurers, allowed into the fray in 1999, have now been around for over two decades. LIC is a financial behemoth like no other in the country, overshadowing even the State Bank of India (SBI). It has 4,955 offices across the country, many of them occupying prime real estate. It directly employs 108,000 people, besides 1.3 million agents across the country, and has assets under management ofRs 36 lakh crore, making it a megacorp three times the size of Reliance Industries, India’s largest private sector company.
Read more about Govt proposes to hike in LIC s authorised capital to Rs 25,000 cr on Business Standard. The government has proposed to significantly increase the authorised capital of Life Insurance Corporation of India (LIC)
The authorised share capital of LIC shall be Rs 25,000 crore divided into 2,500 crore shares of Rs 10 each, as per the amendments proposed in the Life Insurance Corporation Act, 1956
The government has proposed to significantly increase the authorised capital of Life Insurance Corporation of India to Rs 25,000 crore to facilitate its listing slated for the next fiscal.