On July 09, 2021 Department of Financial Services (DFS), Ministry of Finance, removed the Position of chairman from the IPO (Initial Public Offer) bound Life Insurance Corporation of India (LIC) and it will have Managing Director (MD) and Chief Executive Officer (CEO), by Making amendments over the LIC Act 1956.It will Create CEO post after this(Currently there is no CEO in LIC).
• The MD and CEOs will be appointed by the Central Government under section 4 of the LIC Act 1956.
•Currently, LIC has MR Kumar as its chairman And 4 MDs viz, Vipin Anand, Mukesh Kumar Gupta, Raj Kumar, and Siddhartha Mohanty.
ii. The LIC (Special Allowance for In-House Development of Actuarial Capability) Rules, 2002 To appoint a full-time actuary for LIC was also
•Condition: The designated actuary will have to Be a member of the Institute of Actuaries of India or Institute of Actuaries, London, and
Should be nominated by the CEO or a
Committee authorised by him.
i.Rules under pension schemes were also
amended to empower the board to take
decisions pertaining to it.
IPO of LIC:
i.At the Budget 2021, Finance Minister Nirmala Sitharaman announced the IP0 of LIC, to be Floated in 2021-22 as a part of the Rs 1.75 lakh Crore disinvestment target.
ii.Earlier, the govt has amended the LIC Act, 1956 along with the Finance Act 2021 and increased the authorised share capital of LIC from Rs 100 crore to Rs 25,000 crore to facilitate the listing.
ii.The govt plans to launch the listing of LIC through IPO in Q4 FY22, it has made more than 24 changes in the LIC Act to comply with the Listing norms and distribute shares.
Note– In early July 2021, the govt extended the Retirement age of LIC Chairman from 60 to 62 Years
About Life Insurance Corporation(LIC):
Headquarters Mumbai, Maharashtra