LIC will have Chief Executive Officer, Managing Director; Government removes chairman post – Times of India

New Delhi: Life Insurance Corporation of India (LIC) will now have the rank of chief executive officer and managing director instead of the post of chairman, with the government making changes to the relevant rules ahead of the insurer’s initial public offering this financial year.
The changes have been made by the Department of Financial Services under the Ministry of Finance by amending the Life Insurance Corporation of India (Employees) Pension (Amendment) Rules. Apart from this, some other rules have been amended under the LIC Act, 1956.
“Chief Executive and Managing Director means appointed by the Chief Executive Officer and Managing Director” Central Government Under section 4 of the Act (LIC Act 1956), “as per a gazette notification issued on 7th July.
To facilitate the listing of the insurance giant, the government has already approved raising its authorized share capital to Rs 25,000 crore.
In addition, the Department of Economic Affairs under the Ministry of Finance has recently amended the Securities Contracts (Regulation) Rules.
Companies that have a market capitalization of more than Rs 1 lakh crore at the time of listing can now sell only five per cent of their shares, with the latest amendments to the rules, a move that would have helped the government during LIC’s initial public. would be beneficial. Proposal.
Such entities will have to increase their public shareholding to 10 per cent in two years and at least 25 per cent within five years.

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