Govt set to allow 20% foreign direct investment in LIC ahead of listing

DFS, Dipam and DPIIT have finalised the change in FDI policy

The Centre has decided to allow 20 per cent foreign direct investment in the Life Insurance Corporation of India (LIC), like in the case of public sector banks (PSBs), according to people in the know. This is expected through amendment of the Foreign Exchange Management Act (FEMA) rules in a move to attract foreign investors ahead of LIC's public listing.

The Department of Financial Services (DFS) and the Department of Investment and Public Asset Management (DIPAM) have finalised the plan to amend the Foreign Direct Investment (FDI) policy in consultation with the Department for Promotion of Industry and Internal Trade