Page 10 - Insurance Times June 2019

LIC's 59th Divisional Man- NSE, LIC-backed NCDEX focuses on IPO by end 2019
The Life Insurance Corporation of India-(LIC) and National Stock Exchange (NSE)-
agers' Conference held in
backed multi-commodity exchange National
Mumbai Commodity and Derivatives Exchange Limited
The Life Insurance Corporation (NCDEX), which is the market leader in agri-
(LIC)'s 59th All In- commodity trading, has initiated preliminary
dia Sr. Divisional discussions with merchant bankers to raise
Managers' Con- funds via an initial public offer, source in-
ference was held formed.
in Mumbai.
"NCDEX is in talks with SBI Capital and ICICI
Divisional heads Securities to increase around Rs 400 crore to Rs 500 crore via an IPO for growth
representing 113 capital and provide an exit window for their investors. The plan is to file a DRHP
divisions and zonal heads from by end 2019," a source said. Multi Commodity Exchange (MCX) which deals
across the country participated in mainly in metals and energy are currently the only listed commodity bourse in
deliberations for finalising strategies India.
on various aspects of marketing,
According to the NCDEX website, NSE is the largest shareholder in the exchange
customer servicing, information
with a 15 percent stake, followed by LIC (11.10 percent), National Bank For
technology and new initiatives for
Agriculture & Rural Development (NABARD, 11.10 percent), Indian Farmers
the current financial year, according
Fertiliser Cooperative Limited (IFFCO, 10 percent), Oman India Joint Investment
to a press release.
Fund (10 percent), Punjab National Bank (7.29 percent), Canara Bank (6 per-
LIC has registered a market share of cent), IDFC Private Equity Fund (5 percent) and others.
74.71 per cent in number of policies
"With rising volumes, the exchange wants to increase the percentage of the
and 66.24 per cent in First Year Pre-
settlement fund. It also wants to expand and diversify into more commodities
mium Income for the year 2018-19
like its global peers. This is likely to be a mixture of primary and secondary is-
and achieved the highest ever First
sue of shares," added another source.
Year Premium Income of Rs
1,42,191.69crore, the release said. As of March 31, 2018, NCDEX offered trading in 27 commodity contracts, which
The top achievers of 2018-19 were includes 25 agricultural commodity contracts, 1 bullion commodity contract and
felicitated during the conference. 1 metal commodity contract. The website claims the exchange which was
founded in 2003 is the leading exchange for agricultural commodities with an
Rakesh Sharma, MD and CEO IDBI
85 percent market share.
Bank took part in the conference
and shared his vision on the bank's "NCDEX has a diversified set of many shareholders including large national in-
association with LIC of India and the stitutions, public sector banks and private equity funds. Depending on their
synergies that can happen between investment strategy, some investors may seek a complete or partial exit via this
LIC offices and IDBI Bank outlets, the IPO and some new investors may continue on board. Some others may choose
release added.
to dilute their stake pre-IPO," added a third source.
LIC asked to pay claim along with compensation
The Kaithal district consumer forum has asked LIC to pay Rs 4 Lakh along with 9 per cent interest to the husband of a
deceased woman whose claim has been refused by the company two years ago. The forum has also asked LIC to com-
pensate the husband with Rs 5000 for harassment, mental agony and litigation charges.
Sudesh Rani of Kaithal district had died on January 9, 2015, due to some illness. Her husband Sahdev had filed a claim
with LIC as she had bought a life insurance policy from the company. However, raising objections on the deceased's age
and educational background, LIC had refused the claim. The company had also claimed discrepancies in her credentials
when she had bought the policy and when her husband filed the claim.
The consumer forum, in its order, stated, "Once the insurance company had accepted the proposal form from a person
and there was no material difference in the age and education qualification, it could not refuse the claim after the
death of the person."

10 The Insurance Times, June 2019