Rules of the game

Exceptions for PSEs should be avoided

Life Insurance Corporation (LIC) of India on Wednesday informed stock exchanges the Securities and Exchange Board of India (Sebi) had given it a three-year extension to comply with the mandatory 10 per cent public-shareholding norm. It can now attain the mandatory 10 per cent public float by May 16, 2027. Firms with a market capitalisation above Rs 1 trillion are expected to attain 25 per cent public shareholding in five years. However, in the case of LIC, it has already been extended to 10 years. While the LIC stock reacted positively to the extension announcement, it should have been avoided.