'LIC need not pare holdings in cos to 10 pc in short-term'
Life Insurance Corporation of India, has got a reprieve from the IRDA which has said that it would not insist on LIC bringing down its stake in various companies to 10 per cent in immediate-term.india Updated: Feb 22, 2009 10:52 IST
Life Insurance Corporation of India (LIC), has got a reprieve from the IRDA which has said that it would not insist on LIC bringing down its stake in various companies to 10 per cent in immediate-term.
“We will not insist on LIC reducing its stake below ten per cent for some time,” Insurance Regulatory and Development Authority (IRDA) Chairman, J Hari Narayan, told PTI here.
LIC, the country’s largest life insurer and also its biggest institutional investor, has an estimated equity exposure of around Rs 2,00,000 crore in listed companies.
However, IRDA has told LIC in clear terms that it should not hike its stake beyond ten per cent in those companies where its shareholding is in single digit, Hari Narayan said.
“We have informed LIC that in whichever company it presently has a sub-10 per cent stake, it should not be hiked beyond this limit,” he said, adding “our order is prospective and not retrospective.”
Last year, IRDA had said that LIC should pare down its holding in companies where it holds more than a 10 per cent stake.
LIC holds sizeable stakes in several blue-chip companies such as Tata Motors, Corporation Bank, Maruti Suzuki, ITC and Cipla.