The Insurance Regulatory and Development Authority of India (IRDAI) has set a two-year deadline for the Life Insurance Corporation (LIC) to cut its shareholding in listed companies to 15 per cent. According to a media report, the IRDAI has asked the insurance behemoth to prepare a blueprint and submit it before the agency which is tasked to regulate and promote insurance and re-insurance industries in the country.
The two-year time frame has been given in order to avoid any market volatility, a report said.
LIC, the largest insurance company in the country, holds over 15 per cent stake in listed companies like L&T, ITC and Corporation Bank. As of June 30, 2017, the company, which has asset value of over Rs 15,60,000 crore, holds 17.97 per cent stake in Larsen & Toubro, 16.29 per cent in ITC and 18.91 per cent in Corporation Bank.
