New Delhi: Finance Minister Nirmala Sitharaman on Tuesday answered a question related to the LIC IPO. Sitharaman's answer was tabled in response to a starred question posed by Syed Nasir Hussain on LIC IPO.
The question was also on whether the IPO sale would result in "losing market share" and on safeguarding of "33 crore" policy holders.
In her written reply to Rajya Sabha, the Finance Minister said, "the government will remain the majority shareholder and will continue to retain management control safeguarding the interest of policyholders."
She also explained that listing on stock exchanges disciplines the company and provides access to financial markets. "It also gives opportunity for retail investors to participate in the wealth so created."
Commenting on market-share, she said that LIC would not lose its market share.
Sharing a stat, she added, at the end of March 2019, LIC had a market share of 74.71 per cent in number of policies and 66.24 per cent in first year premium income. According to data published by the Life Insurance Council, LIC has a market share of 77.61 per cent in number of policies and 70.02 per cent in first year premium income as on January 31, 2020.
The IPO, she said, would be brought out after necessary legislative changes and regulatory approvals.
* With agency inputs