New Delhi: Modi government is preparing to crack down on China. The Indian government wants to prevent Chinese investors from buying shares in Life Insurance Corporation (LIC). LIC’s IPO is going to come to India in the next few months. The Modi government is considering allowing foreign investors to buy. But it wants to prevent Chinese investors from buying LIC’s IPO.
The news agency Reuters quoted senior government officials and bankers as saying that the Indian government wants to prevent Chinese investors from buying LIC shares. The Center is also planning a new law specifically for this purpose. The government believes that Chinese investments in companies like LIC may pose risks.
The government wants to prevent Chinese investors from buying LIC shares due to the risks involved. However, no final decision has been taken in this matter yet.
India-China border dispute
Last year, there was a clash between Indian soldiers and Chinese soldiers on the border in Galwan Valley. Many Indian soldiers were martyred in this conflict. Since the incident, India is taking a tough stand against China. India has also shut down several Chinese apps in India, including the much-loved app TikTok.
A government official said it may not be business as usual after the border conflict between China and India. In view of the current situation, Chinese investors will be prevented from buying LIC’s IPO. The government will present the IPO of LIC by March next year. The government will sell 5 to 10 percent stake in LIC. The administration expects to raise around Rs 1 lakh crore.
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