FDI in IPO-bound LIC likely to open up fresh scope for disinvestment

NHAI & AAI, which are not registered as companies, also likely to benefit

Allowing foreign direct investment (FDI) of up to 20 per cent in Life Insurance Corporation of India (LIC) may open up divestment opportunities in other “bodies corporate” in the government such as National Highways Authority of India (NHAI) and Airports Authority of India (AAI), which are not registered as companies.

The Union Cabinet on Saturday amended the FDI policy ahead of the big-ticket LIC IPO scheduled for March as the current policy only allowed FDI in Indian companies and not bodies corporate. A body corporate is an entity that has a separate legal existence through an Act of Parliament