The Life Insurance Corporation of India (LIC) is likely to get more time to comply with the rules that mandate a minimum of 25% public float of its equity, reported Business Today. As per the report LIC may require five to seven years to issue more shares to the public and that Initial discussions are being held internally within the Finance Ministry on the matter.
"LIC is an exceptional entity, and it may be impossible for us to abide by the norm by 2027. The appetite of investors and market sentiment need to be considered. We have to increase the float gradually," a finance ministry official told Business Today.
Also Read: LIC front-running case: SEBI bars LIC employee, four others from securities market
LIC in May 2022 divested its 3.5% of equity via an initial public offering. LIC was listed at an over 8% discount, fetching Rs 20,557 crore for the exchequer. The government also has the power to exempt any listed public sector company from the minimum public float requirements on a case-by-case basis as per the amended Securities Contracts (Regulation) Rules, 1957.