The Central Government has announced the listing of Life Insurance Corporation of India (LIC) in the market. Also presenting the Budget 2020, Finance Minister Nirmala Sitharaman said that the government will raise funds by selling its stake with the help of LIC's IPO. LIC, the largest company in the life insurance sector, is not listed in the market. For now, the government may have to amend the LIC Act for this IPO. LIC is currently monitored by the Insurance Regulatory Development Authority of India (IRDAI) but is regulated through the LIC Act 1956.
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Apart from this, LIC has invested heavily in government companies like ONGC. Recently, it has taken a 51% stake in IDBI Bank to get it out of the crisis. In 2018, IDBI was put on the PCA list by RBI due to rising NPAs. In Budget 2020, the government has announced the sale of IDBI Bank stake to private investors. LIC has recently acquired a 51 percent stake in IDBI Bank. The government holds a 46.46 percent stake in IDBI Bank. Apart from investing in government securities, LIC invests heavily in the stock market every year.
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It is being told that in the current financial year, with the help of disinvestment, a target of income of Rs 1.05 lakh crore was set. According to the Economic Survey 2019-20, the government has managed to raise only Rs 0.18 lakh crore with the help of disinvestment till 31 December 2019. Have met Apart from this, the government has earned about Rs 1,8821 crore from the sale of enemy assets. The central government has also doubled the disinvestment target for the next financial year. For FY 2021, the government has set a disinvestment target of Rs 2.1 lakh crore.
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