Government’s 3.5% Stake Sale Plan in LIC Gets Sebi Approval

The capital markets regulator has relaxed certain requirements for the initial public offering of Life Insurance Corp of India. The Securities and Exchange Board of India has allowed the government to divest 3.5 % in the insurer, exempting it from the mandatory 5% stake sale for large issues.

Anchor investors in LIC’s listing have been exempted from the recently introduced tighter lock-in requirement for the shares allotted to them, said two people with the direct knowledge of the matter.

Separately, the Reserve Bank of India has, however, rejected LIC’s request to allow non-banking finance companies to lend more than ₹1 crore to investors wanting to put their money in the IPO. From April 1, finance companies cannot lend more than ₹1 crore per borrower for IPO.

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