LIC IPO-related news: Modi Govt makes big CHANGES! CEO to substitute chairman, Board to Corporation - Details here

Ahead of India’s largest insurer going public, the central government has changed Life Insurance Corporation’s position of Chairman to Chief Executive Officer (CEO), which means the one who would head the state-owned insurance company will be called CEO, unlike Chairman as earlier.

The government made these changes through the second amendment of the Life Insurance Corporation Act 1956, it said, “In exercise of the powers conferred by section 48 of the Life Insurance Corporation Act, 1956 (31 of 1956), the Central Government hereby makes the following rules further to amend the Life Insurance Corporation of India (Special Allowance for In-House Development of Actuarial Capability) Rules, 2002.” 

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The centre made these changes official by issuing a Gazette notification through the department of financial services under the Ministry of Finance on Wednesday.

Moreover, the notification also mentions that the government has also changed the word Corporation to Board, for further flexibility to make the insurance company public.

The notification said, “For the word ‘Chairman’, the word “Chief Executive” shall be substituted and for the word ‘Corporation’, the word “Board” shall be substituted”, for all the rules and sub-clauses in the Life Insurance Corporation Act.

Earlier in February, Finance Minister Nirmala Sitharaman during her Budget 2021 speech had declared that the cash-rich LIC would be listed on the exchanges. LIC is an active investor in the equity markets, as the company garnered over Rs 35000 crore due to profit booking in FY21 as compared to Rs 18000 crore in FY20, as per Zee Business report.

Moreover, the company created a new record of collecting premium worth Rs 1.84 lakh crore in the financial year 2020-21, up 3.4 percent or about Rs 1.77 lakh crore from the previous year, it said through a press release earlier April.