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SEBI approves Government’s Stake Sale Plan in LIC

Published on April 27, 2022
Current Context: LIC is set to undergo Initial Public Offering (IPO), as per the Government’s assurance of divesting shares of LIC for better financial health.
SEBI approves Government’s Stake Sale Plan in LIC
  • As per the SEBI Rules, divestment below 5% of the total capital is not allowed, however after a request from the Government, the largest insurer has been exempted from this clause. LIC would divest 3.5% of her stake through an IPO which is slated to take place later this week.
  • LIC had also requested from RBI to allow NBFCs to lend more than 1 crore to investors wanting to put their money in an IPO. The request, however, was not accepted.
  • Anchor Investors have been exempted from Lock requirements. It would attract more bundled investments in LIC through Angel Investors.


Q.1 How much of the capital is LIC about to divest through IPO?
a. 5%
b. 3.5%
c. 2.5%
d. 4%

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