Page 10 - Insurance Times August 2021

age for the top executives of the ma- advisor would manage the entire share appointed by the government, the
jority of PSUs is 60 years, barring a few sale process. board of directors will be headed by a
exceptions, including the State Bank of "The mandate received from CCEA is non-executive Chairman selected by
India (SBI). to off-load upto 100 per cent stake of the government.
"Notwithstanding anything contained GoI and LIC alongwith transfer of man- Currently, LIC top management con-
in these rules, if the Central Govern- agement control. However, the exact sists of the Executive Chairman and
ment appoints the Chairman for a term quantum is yet to be worked out. It will four Managing Directors. The Chair-
of office that extends beyond sixty be determined, as we go through the man of the LIC is a government of In-
years of age, or extends his term of transaction and ascertain investors' dia Secretary rank officer. With the
office to a period beyond the said age, interest, market appetite etc. executive powers now going to the
he shall not superannuate till he com- "It is clarified that LIC's stake will be proposed MD and CEO, LIC is likely to
pletes such term, or till he attains the get a Non-executive Chairman who
sold alongwith GoI's shareholding in
age of sixty-two years, whichever is chairs the board meetings.
this transaction. So there is only one
earlier, the gazette notification said.
transaction advisor," it said. However, it's not yet clear about the
Last month, the government approved The quantum of stake dilution would role and designation of four MDs of
a nine-month extension to LIC Chair- be declared before RFP (Request for LIC. "The full picture about the com-
man M R Kumar till March next year Proposal) stage of the transaction, it position of the top management is yet
in view of the insurer's proposed initial added. to be clear as the government is yet
public offer towards the end of the to clarify how they are going to redes-
current fiscal. The DIPAM had last month invited bids ignate posts existing four MDs. Obvi-
from transaction advisors and legal ously, there can't be five MDs for LIC,"
firms for managing and advising on the
LIC's holding in IDBI bank said industry observers.
strategic sale and transfer of manage-
to be sold ment control in IDBI Bank. However, while Chairman and MD
posts in nationalised banks are split,
LIC's holding in IDBI Bank would be State Bank of India still has an Execu-
sold along with the government's stake LIC post of executive chair- tive Chairman and four MDs.
in the lender's disinvestment, but the man scrapped
exact quantum of stake dilution is yet Life Insurance Corporation of India Govt. approaches IRDAI to
to be decided, the Department of In-
vestment and Public Asset Manage- (LIC), which is gearing up to launch a allow listing of 'corpora-
ment (DIPAM) has said. mega initial public offering (IPO), will
now have a Managing Director and tion'
The central government and LIC to- Chief Executive Officer instead of an The government has approached the
gether own more than 94 per cent Executive Chairman on the pattern of insurance regulator to seek an exemp-
equity of IDBI Bank.
public sector banking industry. tion for listing of a 'corporation' as it
LIC, currently having management prepares for Life Insurance Corporation
The changes have been made by the
control, has 49.24 per cent stake, Department of Financial Services under of India's (LIC) initial public offering
while the Government of India holds the Finance Ministry by amending Life (IPO), expected to be the largest offer-
45.48 per cent. Non-promoter Insurance Corporation of India (Em- ing in the country.
shareholding stands at 5.29 per cent. ployees) Pension (Amendment) Rules. The Department of Investment and
The Cabinet in May had approved the Besides, some other rules under LIC Public Asset Management (Dipam) is in
strategic sale of the entire stake of the Act, 1956, have been amended. talks with the Insurance Regulatory
government and Life Insurance Corpo- and Development Authority of India
"Chief Executive and Managing Direc-
ration (LIC) in IDBI Bank Ltd. tor means the Chief Executive Officer (Irdai) to seek an exemption for the list-
In response to queries received from and Managing Director appointed by ing of an insurance 'corporation' on
potential transaction advisors, the the Central Government under section the exchanges, as LIC would be the first
DIPAM has clarified that since LIC's 4 of the Act (LIC Act 1956)," according insurance corporation coming with an
stake would be sold along with that of to a gazette notification. While public IPO said an official.
the government's, a single transaction sector banks are run by MD and CEO Irdai's current guidelines allow listing

10 The Insurance Times, August 2021