Changes to India's LIC Act takes effect

This is seen as a major step towards LIC's proposed IPO.

The Indian government has taken a major step towards the initial public offering of life insurer LIC by implementing the 27 legislative changes made into the Life Insurance Corporation Act through the Finance Act of 2021, according to media reports.

Such amendments include having a board with independent directors in line with listing obligations, hiking the authorised capital to $3.35b (INR250b) divided into 25 billion shares, and appointing an audit committee, auditors, declaring dividends, and issuing bonus shares. 

However, the amendments do not change the legal position of the corporation or turn it into a company, reports said.

The government has already begun presentations to global investors in roadshows about the proposed IPO, but has yet to issue the request for proposal for appointment of merchant bankers and book running lead managers, reports added.