Department for Promotion of Industry and Internal Trade

Solution

Department for Promotion of Industry and Internal Trade (DPIIT) on 14 March, 2022 had amended the Foreign Direct Investment (FDI) policy to facilitate overseas investment in LIC ahead of the mega public offer. Since the foreign inflows’ ceiling for public sector banks is 20% under government approval route as per the present FDI policy, it has been decided to allow foreign investment of up to 20% in LIC and other such corporate bodies. “Foreign investment in LIC shall be subject to the provisions of the Life Insurance Corporation Act, 1956, (LIC Act) as amended from time to time and such provisions of the Insurance Act, 1938.