People who have policies in Life Insurance Corporation of India (LIC) may now have a chance to also be shareholders of the corporation. The government of India is planning to set aside 10% of LIC IPO for people having LIC policies, according to Times Now
Finance Minister Nirmala Sitaraman in her budget speech said that the government will launch LIC IPO in the next financial year. Dipam Secretary Tuhin Kanta in an interview to Times of India said that the Act states that something will be given to the policyholders. “We are telling policyholders to become shareholders. Up to 10% can be offered to policyholders”, he said.
He also considers this the biggest reform in the public sector after the liberisation of the economy in 1991. “We had a policy in 2004 but it was a case-by-case basis”, he told the publication.