Centre plans divestments in LIC, public sector banks beyond SEBI's requirements: Report

The newspaper said the government is exploring contracts with merchant bankers for a period of three years, with an option of additional two years

The Centre is planning to cut down its stake in Life Insurance Corporation and a few public sector banks, more than required by the Securities and Exchange Board of India (SEBI), a report by Mint said.

However, this won’t affect government’s majority ownership and management control, the report said. The newspaper said the government is exploring contracts with merchant bankers for a period of three years, with an option of additional two years.

The report said PSB sales could happen after 2026, with the government expected to meet SEBI’s norms for LIC by 2027. The government is seeking to capitalize on favourable market conditions raise money for itself, the newspaper said.

Earlier in July, Moneycontrol had reported that the government has approved an offer-for-sale in insurance behemoth LIC to achieve Centre’s disinvestment targets and unlock potential.

The stock of LIC was trading 1.77 percent lower at Rs 896.8 on NSE at 13:05 pm.