Finance Ministry to hold Discussions with SEBI

The Ministry of Finance will consult with the Securities and Exchange Board of India (SEBI) to decide on a roadmap for shares of Life Insurance Corporation of India (LIC) to meet minimum public ownership standards Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said.

DIPAM will discuss with SEBI and the Department of Economic Affairs (DEA) for seeking an exemption from meeting the 25% minimum market float, Pandey said. Its because even a 5% stake dilution in LIC through its IPO can lead to upsetting the market due to the current circumstances.

Sanjay Malhotra, Minister of Financial Services, upheld the Center's decision to reduce issuance, saying, Despite the 3.5% reduction, it (IPO) is still the largest.

The LIC IPO will open on May 4 and will close on May 9. The Centre is planning to sell 22.13 crore shares, or a 3.5% stake, through the issue. The company is expected to list on exchanges on May 17 subject to regulatory approvals.