Banking

LIC can now buy up to 30% equity in a firm

  • HT Correspondent, Hindustan Times, New Delhi
  • |
  • Updated: Nov 21, 2012 09:47 IST

The finance ministry on Wednesday allowed state-owned Life Insurance Corporation (LIC) to invest up to 30% in a company from its earlier cap of 10% - a move seen as an attempt to bolster the government's disinvestment programme by allowing LIC to invest in public sector firms.

"LIC can invest up to 30% of a firm's paid-up capital, against 10% earlier," said financial services secretary DK Mittal.

Weak market conditions have raised questions on the government's ability to raise R30,000 crore by selling off its equity stake in identified public sector undertakings in the remaining four months of this fiscal year.

 

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