The Insurance regulatory and development authority (IRDA) has allowed Life Insurance Corporation (LIC) to remain invested with over 10% stake in blue-chip companies. However, LIC cannot increase its stake beyond 10% in fresh investments.
J Hari Narayan, Chairman of IRDA, said: “LIC has no immediate pressure to pare its existing equity in the companies.” The company need not sell its stake to comply with IRDA cap. IRDA Chairman also said that LIC cannot purchase more than 10% stake in companies in which its existing equity holding is less than 10%.
LIC has more than 10% stake in many leading Indian companies and had been facing problems due to IRDA ceiling for investment in a listed company.