The Life Insurance Corporation of India (LIC) will now have the publish of Chief Executive Officer and Managing Director in place of the Chairman position, with the authorities making modifications to applicable policies in advance of the insurer’s preliminary public providing this fiscal.
The changes were made by the Ministry of Financial Services of the Treasury Department by amending the Pension Regulations (Change) of Life Insurance Corporation of India. In addition, some other rules of the 1956 LIC Act were changed.
“Executive Director and Managing Director means the Executive Director and Managing Director appointed by the central government under Section 4 of the Act (LIC Law 1956)”, according to a bulletin dated July 7th.
To make the insurance giant’s listing easier, the government has already approved an increase in authorised share capital to 25 billion rupees. In addition, the Department of Commerce of the Ministry of Finance recently changed the rules (regulation) for securities contracts.
Companies with a market capitalisation greater than Rs 1 lakh crore at the time of listing can now only sell five percent of their stock with the latest change in rules, a move that will be beneficial to the government during the LIC initial draft To offer.
These institutions must increase their public participation to 10 percent in two years and to at least 25 percent in five years.