(a) whether Life Insurance Corporation of India (LIC) proposes to reduce
its holding in LIC Mutual Fund below 50% and lose the management control
in favour of a Japanese financial services company;and
(b) if so, the details thereof and the reaction of the Government thereon?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) & (b): Life Insurance Corporation of India (LIC) has reported that presently its holding
in LIC Mutual Fund is 49,5.0%. The proposal is to divest a minority stake of 35% in LIC Mutual
Fund in favour of M/s. Nomura Asset Management Co. Ltd. This divestment will be done by GIC
Housing Finance Ltd. and LIC Housing Finance Ltd. in favour of M/s. Nomura Asset Management
Co. Ltd. After divestment, LIC group`s (LIC & LIC Housing Finance Ltd.) holding will be 65%
in LIC Mutual Fund and the management control will remain with LIC.