CNBC-TV18's Aakansha Sethi reports on the easing of investment norms for the Life Insurance Corporation Of India (LIC) . The new norms will help LIC and allow the PSU more headroom for investment, going ahead.
The LIC has been requesting to invest more than the 10 percent that it is currently allowed because it has a huge reserve of cash. In fact, LIC has a more-than 10 percent investment in several companies. The finance ministry has finialised the notification whereby LIC can invest upto 30 percent in a listed company.
This will also help the government move ahead on its divestment agenda as evinced by LIC saving the day in the last ONGC auction. However, this has not gone down well with insurance regulator Irda which has publically expressed disappointment with this decision.