Last month LIC appointed six independent directors to its board of directors
New Delhi:
Ahead of its initial public offering (IPO), Life Insurance Corporation (LIC) last month appointed six independent directors to its board to meet regulatory standards. on corporate governance.
The LIC has appointed former financial services secretary Anjuly Chib Duggal, former Securities Exchange Board of India (SEBI) member G Mahalingam and former SBI Life chief executive Sanjeev Nautiyal, the sources said.
In addition, MP Vijay Kumar, Raj Kamal, and VS Parthasarathy, chartered accountants have also been replaced as independent directors on LIC’s board of directors.
With these appointments, the total number of independent directors rises to nine and all vacancies are filled.
The implementation of corporate governance standards is an important factor in submitting the Draft Red Herring Prospectus (DRHP) to SEBI.
The central government is expected to file draft papers for the LIC’s major initial public offering with market regulator Sebi this week, the Minister of Investment and Financial Management. Public Property (DIPAM) Tuhin Kanta Pandey said.
The embedded value of LIC has been achieved and it is more than Rs 5 lakh. The scale of the problem will be covered in the DRHP.
Mr. Pandey said the issue, once approved by SEBI, will likely be released to the market in March.
Up to 10% of LIC’s IPO size will be reserved for policyholders.
The listing of the LIC is crucial for the government to meet its reduced revenue estimate of Rs 78,000 crore for the current financial year.
To date, the Center has raised around Rs 12,000 crore from the privatization of Air India and the sale of shares in other PSUs.
To facilitate the smooth listing of the huge insurance property, the government last week extended the term of LIC Chairman MR Kumar by one year.
Besides that, the government has also extended the term of one of the executives, Raj Kumar, by 12 months.
This is the second extension for the President of LIC. In June last year, he was extended for another 9 months due to LIC’s proposal to go public for an initial public offering at the end of the current financial year.
