Cabinet clears listing of PSU insurance cos
Finance Minister Arun Jaitley says govt would take to OFS route and issue fresh shares for listing these companies on bourses.
Mumbai: The Union Cabinet on Wednesday cleared much awaited insurance sector reforms. With this decision, the government has paved way for listing of pubic sector insurance companies on stock exchanges.
Largest public sector insurer Life Insurance Corporation of India (LIC) is not listed on country’s premium bourses. Move would benefit the company as it would make room for the government insurer to raising funds at markets.
Other big players in the sector also likely to benefit form the decision. “Government will reduce its holding in public sector insurance companies from 100 per cent to 75 per cent,” Finance Minister Arun Jaitley told reporters.
He added that government will take to the Offer-for-Sale route to enlist these entities on bourses. Fresh share issues would also be conducted, Jaitley said. According to him, listing of these companies would make it easier for government to plan disinvestment schemes for these entities.