LIC Pension Fund, an arm of the country's largest insurer LIC,has approached interim regulator PFRDA seeking permission to invest in IPOs which will help it take part in the government's divestment programme.
"At present, pension funds are not able to invest if companies are not listed. We have written to Pension Fund Regulatory and Development Authority (PFRDA) to consider this," LIC Pension Fund CEO H Sadhak told PTI when asked whether the company is interested in taking part in the government's disinvestment programme.
"If they allow us, then we will be investing...Once the guideline comes, it will be uniform, so everyone will be able to invest," he added.
The government targets to raise Rs 40,000 crore through disinvestment this fiscal. It has already mopped up Rs 1,000 crore by divesting stake in Satluj Jal Vidyut Nigam, and about Rs 1,000 crore through Engineers India follow-on public offer.
Coal India's Rs 15,000 crore IPO is open for subscription. On day 2, the issue was over-subscribed 1.71 times.
Besides, many more public issues are expected to hit the market this fiscal.
LIC Pension Fund was formed by LIC after being appointed the fund manager to operate the New Pension System for the government employees by PFRDA.
Initially, the government launched the New Pension System for central government employees, joining service on or after January 1, 2004, but it was extended to all citizens from May 1, 2009.
