LIC requests RBI to introduce 100-year government bonds
LIC requests RBI to introduce 100-year govt bonds
Mumbai, Mar 18 (PTI) Life insurance giant LIC has requested the Reserve Bank to introduce long-term government bonds, including 100-year paper as well, a top official said on Tuesday.
Siddhartha Mohanty, Managing Director and Chief Executive of LIC, said the insurer sells whole life policies, which need investments in long-term bonds.
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The RBI has been giving permission to 20-30 years bonds, and has also given a go-ahead for a 40-year bond, he added.
"I am also expecting 50-year, even 100-year bonds. Our people are discussing this from time to time with RBI, and they are also considering this," Mohanty told reporters on the sidelines of the GCA25 here.
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Further, he pointed out that while many countries issue 100-year bonds in the global market, India has yet to introduce such bonds due to limited demand and low activity in the secondary market.
Mohanty said LIC has been very active in the G-sec (Government Security) investments, and added that the insurer has been subscribing to over a fifth of the issuances.
