Business

DPIIT to approach cabinet soon for changes in FDI policy to support LIC IPOs, says secretary

Spread the love


Industry Secretary Anurag Jain said on Sunday that the Department for Promotion of Industry and Internal Trade (DPIIT) will soon approach the union. cabinet To obtain its approval for conversion to Foreign Direct Investment (FDI)Foreign direct investmentPolicy to facilitate disinvestment of LIC, This issue has been discussed with Department of Financial Services and the Department of Investment and Public Asset Management, and everyone has reached a consensus, he said.

Jain said, “Now it is a matter of drafting it. We will try that soon after inter-ministerial consultations we will make a cabinet note, (to) take approval… it will happen very soon,” Jain said.

The cabinet had approved the initial public offering (IPO) of LIC in July last year and stake sale is being planned in the current quarter. The Indian market is expected to be the biggest ever, pegged at around Rs 1 lakh crore.

As per the current FDI policy, 74 per cent foreign investment is allowed under the automatic route in the insurance sector. However, these rules do not apply to LIC, which is administered through a separate LIC Act.

The LIC Act, which regulates the insurer, does not mention foreign investment and limits any shareholder other than the central government to a maximum of 5% stake. Other than this, Securities and Exchange Board India’s regulations allow both foreign portfolio investment and FDI under public offerings.

The finance minister has directed that the disinvestment is to be completed during the current financial year, Jai said, “so we also have to work at that pace”.

startup

On the issue of FDI listing of Indian startups, the Secretary said that the department is still examining the matter to see what startups want.

Jain said, “There is nothing in my mind that stops him (that) from doing it. Why do they want to go out and make the list, what are the factors that are not there? We are engaged in discussions with industry leaders.”

“I know there was a proposal that was under consideration. There are views that need to be synchronized and arrive at a final conclusion. But I want to understand what exactly is needed. Why can’t it be listed… so we are still probing it,” he said.

.

Usama Younus

Usama Younus is the owner and super admin of the site he's is an expert in news editing, tech and entertainment magazine management, and articles editing E.T.C.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
%d bloggers like this: