In the federal budget, it was announced that the government would sell shares of LIC, the country’s largest public sector insurer. Finance Minister Nirmala Sitharaman has said that the sale of shares of LIC will not affect its guarantee and the guarantee given to the 5 crore policy makers will be protected.
The LIC was also included in the government’s share exclusion target in the federal budget for 2021-27. The government has decided to sell one per cent of its shares in LIC, which holds 100 per cent.
The announcement of the sale of LIC shares has raised questions and controversies across the country.
Fears have been raised for LICs and policyholders about what will happen if LIC shares are sold.
In response to the debate, Nirmala Sitharaman expressed her views at a press conference.
“A portion of the shares of LIC will be sold on the IPO and there will be no change in its management. It will continue to be a government agency. “