India

India

Allows 20 per cent foreign participation in the Life Insurance Corporation ahead of listing

26 Feb 2022

On 26 February, 2022, India's Cabinet approved a policy amendment allowing FDI of up to 20% in Life Insurance Corporation of India (LIC). The change is aimed at easing the listing of the State-run insurer.

Until this amendment, even though foreign institutional investors were allowed to hold up to 74% of private insurance companies and up to 20% of State-owned banks, they were not permitted to own shares in LIC. The amendment allows foreign pension funds, insurance companies and mutual funds to participate in the IPO of India's largest life insurer.