Govt mulls permitting FDI in LIC

New Delhi, August 24

The government is mulling allowing FDI in LIC, sources said. The proposal is under discussion between the Department of Financial Services and Department of Investment and Public Asset Management. “Discussions have been going on for the past few weeks. It would also go for inter-ministerial discussions and require Cabinet nod,” a source said. — PTI

Current policy

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