Government To Sell 6.5% Stake In LIC For Over Rs 30,000 Crore
GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims·
Why in news
The Government of India is initiating an Offer for Sale (OFS) of a 6.5% stake in LIC to meet SEBI's minimum public shareholding norms.
Background
The government plans to sell a 6.5% stake in LIC at a price of Rs 382 per share, aiming to raise approximately Rs 31,000 crore. This move is intended to bring the public shareholding above the 10% threshold required by SEBI.
Facts for Prelims
- FactGovernment currently holds a 96.5% stake in LIC.
- FactThe offer price for the LIC stake is set at Rs 382 per share.
- BodySEBI (Securities and Exchange Board of India) mandates minimum public shareholding for listed companies.
- FactThe deadline to meet the 10% public shareholding requirement is May 16, 2027.
For Mains
Q. Discuss the implications of privatizing stakes in Public Sector Undertakings (PSUs) like LIC on the Indian capital markets and fiscal health.
Dimensions to cover in your answer
- fiscal deficit reduction
- market liquidity
- governance and efficiency
- impact on public trust
Keywords: Offer for Sale (OFS) · Public Shareholding · Disinvestment · Capital Markets · Fiscal Consolidation
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.