Govt approves 20% FDI in LIC via automatic route

• The Union Cabinet has approved an amendment to the FDI Policy to allow foreign direct investment (FDI) up to 20 percent under the “automatic route” in Life Insurance Corporation (LIC). This comes ahead of IPO of LIC.
• Prior to this, there was no limit was prescribed for foreign investment in LIC. The FDI ceiling for LIC has now been made at par with that of public sector banks.
• It must be noted that the FDI limit in the insurance sector is 74 percent. Last year it was raised from 49% to 74%.

Points to remember:

1. Life Insurance Corporation (LIC) was established under the LIC Act, 1956.
2. What is the FDI Limit for LIC under the automatic route?= 20%
3. What is the FDI limit for public sector banks?= 20%
4. What is the limit for insurance companies?= 74%

Source: Indian Express