Irdai directs LIC to reduce stakes in L&T, ITC to 15% by Dec 2018

The general insurance business grew 31% last year and life insurance 25%

The Insurance Regulatory and Development Authority (Irdai) has asked the country’s largest insurer, Life Insurance Corporation (LIC), to reduce its stakes in L&T and ITC to 15 per cent by December 2018.

However, in companies where LIC has strategic investments, like Corporation Bank and LIC Housing Finance, it does not have to reduce its stakes to 15 per cent or less.

LIC could continue its strategic investment in other companies beyond 15 per cent as usual, particularly in Corporation Bank and LIC Housing Finance, said Irdai member Nilesh Sathe on the sidelines of the CII’s 19th Insurance Summit.

The regulator