Government offers nine-month extension to LIC chairman

NEW DELHI: The authorities has given a nine-month extension to LIC chairman M R Kumar until March subsequent yr in view of the insurer’s proposed preliminary public supply in the direction of the top of the present fiscal.
In her finances speech 2021, finance minister Nirmala Sitharaman stated the preliminary public supply (IPO) of LIC could be floated in 2021-22 as a part of the bold Rs 1.75 lakh crore disinvestment goal.
The authorities has accredited the proposal of the division of economic companies for extending the time period of Kumar from June 30, 2021 until March 13, 2022, the date when he completes three years, sources stated.
The sources stated the foundations beneath the Life Insurance Corporation Act, 1956, have been amended to supply extension past 60 years in view of the continuing preparation for the IPO, they added.
Kumar was to retire this month upon attaining the age of 60 years.
The authorities owns 100 per cent stake in LIC. Once listed, it’s prone to turn out to be the nation’s largest firm by market capitalisation with an estimated valuation of Rs 8-10 lakh crore.
Meanwhile, the federal government has considerably elevated the authorised capital of LIC to Rs 25,000 crore from Rs 100 crore to facilitate the itemizing.
The nation’s largest life insurer has an asset base of Rs 31,96,214.81 crore.
LIC collected the best ever new enterprise premium of Rs 1.84 lakh crore within the fiscal ended March 31, 2021, as per provisional information.
The market share of the insurer, which has greater than 29 crore coverage holders, stood at 81.04 per cent by way of the variety of insurance policies issued in March 2021.



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