Before LIC IPO, the government has taken a big decision. The government has increased the retirement age of LIC chairman from 60 to 62. Last month, the tenure of Chairman MR Kumar was extended by nine months till March next year.
LIC’s IPO by the end of the current financial year.
Before LIC IPO, the central government has taken a big decision. The government has increased the retirement age of the Chairman of Life Insurance Corporation of India (LIC) to 62 years. For this amendment has been made in the Life Insurance Corporation of India (Employees) Regulations, 1960. It is proposed to bring an initial public offering of LIC by the end of the current financial year. Under which LIC will be listed in the stock market.
According to the notification issued by the government on June 30, 2021, the changes made in the rules will be called Life Insurance Corporation of India (Employees) Amendment Rules. It is noteworthy that the retirement age of top executives in PSUs is 60 years, barring a few exceptions, including State Bank of India. According to a notification published in the Official Gazette, “Notwithstanding anything contained in these rules, if the Central Government appoints a Chairman for such term as is more than the age of sixty years, or the period of his term of office exceeds the said age, if he is extended for a term of three years, he shall not retire until he completes his term or until he attains the age of 62 years. Whichever is earlier, will be applicable.
Last month, the tenure of the chairman was extended by 9 months.
Last month, the government extended the tenure of LIC Chairman MR Kumar by nine months till March next year. It is proposed to bring LIC’s IPO by the end of the current financial year. Keeping this in view, this step was taken. The government has extended Kumar’s tenure from June 30, 2021 to March 13, 2022. By this date, he would have completed his three-year term.
Privatization and disinvestment target 1.75 lakh crore
Finance Minister Nirmala Sitharaman had said in this year’s budget speech that the initial public issue of LI will be launched in the market in 2021-22. This issue will be brought to meet the disinvestment target of Rs 1.75 lakh crore fixed for the year. The government has already amended the Life Insurance Corporation Act 1956 along with the Finance Bill 2021 for this.
Authorized capital raised to Rs 25,000 crore
Under the amendment, the government also increased the authorized share capital of LIC from Rs 100 crore to Rs 25,000 crore. As per the amendment, the authorized share capital of LIC will be Rs 25,000 crore with 2,500 crore shares of face value of Rs 10.
LIC can become the country’s largest company
The government has 100% stake in LIC. With the listing of LIC in the market, it can become the largest company with market capitalization in the country, with a market valuation of 8 to 10 lakh crore rupees.
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