Govt to sell part of its stake in LIC as part of disinvestment: Sitharaman

Finance Minister Nirmala Sitharaman on Saturday (February 1) said insurance behemoth Life Insurance Corporation of India (LIC) listed as part of the government disinvestment initiative.

In her budget speech on Saturday (February 1), she said the listing would bring in more financial discipline among the entities.

The government proposes to sell a part of its holding in LIC through initial public offer. Currently, the government owned the entire 100 per cent stake in LIC. However, the minister did not reveal the percentage of holding that it would sell. The minister also said that the government would ensure a mechanism to address liquidity constraints of NBFCs and house finance corporations.

“The government will offer support by guaranteeing securities floated to provide liquidity for NBFCs,” said the minister.

Also, the government would the government will sell its stake in IDBI Bank to private investors and also amend Banking Regulation Act to strengthen co-op banks.

The LIC divestment remained the highlight of the budget speech other than the new tax regime announced by the FM.Finance Minister Nirmala Sitharaman on Saturday (February 1) said insurance behemoth Life Insurance Corporation of India (LIC) listed as part of the government disinvestment initiative.