(a) Whether there is any standing order of the Government that allows Life Insurance
Companies (LIC) to hold up to 30% in a company`s equity;
(b) if so, whether Insurance Regulatory & Development Authority have recommended
their views in this regard; and
(c) if so, the details thereof?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a): The Government, vide Notification dt.23.08.1958, had advised the Life Insurance
Corporation of India (LIC), not to invest in the equity shares of any one company more
than 30% of the subscribed equity share capital of that company except with prior permission
of the Government.
(b) & (c): The Insurance Regulatory & Development Authority (IRDA) has reported that it has
not recommended any view in this regard. However, its current regulations provide that the
investment, at any time, should not exceed 10% of the subscribed share capital, free reserves
and debentures/bonds of the investee company or 10% of the controlled funds, whichever is less.