Page 14 - Insurance Times October 2023
P. 14

LIC may need 5 yrs after '27 to comply with float
                                                                                  Attention Subscribers
           norms
                                                                                Please renew your Subscription of The
           LIC may require at least five more years to comply with the minimum public
                                                                                Insurance Times Journal to receive
           shareholding of 25 per cent beyond the current exempted timeline of 2027.
                                                                                copy of the journal uninterruptedly.
           Formal communication in this regard had been shared recently with the  You can now pay by GPAY, Phonepe,
           finance ministry, underlining LIC's roadmap, plans of further dilution of stake,  Paytm, Amazon, ICICI Pay, BHIM UPI
           current norms around public float, and challenges ahead, a government
           source familiar with the matter said.

           "Going  forward,  we  will have  to take  a call,  along  with  Sebi and  the
           Department of  Economic  Affairs on the roadmap for  minimum public
           shareholding (MPS). This could be done keeping market acceptance in mind,"
           he said. Currently, the government holds a 96.5 per cent stake in LIC.
           Sources said that the government has decided to sell the stake in tranches
           where it could dilute a smaller portion. Any decision on further dilution of
           stake would be taken after considering the market situation in view of a global
           slowdown and domestic factors. The process would take longer than the given
           timeline and may need five to seven more years to meet the requirement,
           the official cited above said.
           For issuers with a post-issue market capitalisation of over Rs 1 trillion, Sebi
           had in 2021 eased the deadline for a 25 per cent MPS to give five years. This
           was done to facilitate the IPO of LIC.

           "For issuers with a post-issue market capital exceeding Rs 100,000 crore, the
           requirement of minimum public float will be reduced from 10 per cent of post-
           issue market capital to Rs 10,000 crore plus 5 per cent of the incremental
           amount beyond Rs 100,000 crore. These issuers shall be required to achieve
           at least 10 per cent public shareholding in two years and at least 25 per cent
           public shareholding within five years from the date of listing," Sebi had said,
           while tweaking the rule in 2021.



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            14    October 2023   The Insurance Times
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