Authorities provides nine-month extension to LIC chairman – Instances of India

NEW DELHI: The federal government has given a nine-month extension to LIC chairman M R Kumar until March subsequent yr in view of the insurer’s proposed preliminary public provide in direction of the tip of the present fiscal.
In her funds speech 2021, finance minister Nirmala Sitharaman mentioned the preliminary public provide (IPO) of LIC can be floated in 2021-22 as a part of the bold Rs 1.75 lakh crore disinvestment goal.
The federal government has accredited the proposal of the division of monetary providers for extending the time period of Kumar from June 30, 2021 until March 13, 2022, the date when he completes three years, sources mentioned.
The sources mentioned the principles beneath the Life Insurance coverage Company Act, 1956, have been amended to offer extension past 60 years in view of the continued preparation for the IPO, they added.
Kumar was to retire this month upon attaining the age of 60 years.
The federal government owns 100 per cent stake in LIC. As soon as listed, it’s more likely to develop into the nation’s largest firm by market capitalisation with an estimated valuation of Rs Eight-10 lakh crore.
In the meantime, the federal government has considerably elevated the authorised capital of LIC to Rs 25,000 crore from Rs 100 crore to facilitate the itemizing.
The nation’s largest life insurer has an asset base of Rs 31,96,214.81 crore.
LIC collected the best ever new enterprise premium of Rs 1.84 lakh crore within the fiscal ended March 31, 2021, as per provisional information.
The market share of the insurer, which has greater than 29 crore coverage holders, stood at 81.04 per cent by way of the variety of insurance policies issued in March 2021.

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