‘Allowing LIC time period of 10 years is a welcome step’

New Delhi: Founder MMJC & Associates Makarand M Joshi on Friday said that the decision of allowing LIC time period of 10 years to achieve minimum public shareholding is a welcome step looking at the current situation of the global stock markets and geopolitics.

He said that the sale stake in LIC would have released a supply of around 40 crore shares of LIC in the market.

“This might have affected the share price of LIC,” he said.

He said that this step of government would act as a breather for investors of LIC, which is already trading below the IPO price.

“This exemption given by the central government for achieving minimum public shareholding would act as a precedent for similar PSUs,” he said.

Department of Economic Affairs, Ministry of Finance vide Office Memorandum dated December 20, 2023 has decided in the public interest, to grant one-time exemption to Life Insurance Corporation of India to achieve 25 per cent Minimum Public Shareholding (MPS) within 10 years from the date of listing i.e., till May 2023 under Rule 19A (6) of the Securities Contract (Regulations) Rules (SCRR) 1957.

LIC is up more than 3 per cent in trade on Friday at 793.