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India Cabinet Said to Allow 20% Foreign Direct Investment in LIC

  • Allowing foreign funds will aid LIC’s capital raising process
  • Roadshows conducted amid volatile markets, tensions in Europe
An LIC office building as seen in Kolkata, India.

An LIC office building as seen in Kolkata, India.

Source: NurPhoto/Getty Images

India’s cabinet is said to have approved a proposal to allow overseas investors to own 20% of Life Insurance Corporation, according to a person with knowledge of the matter, a move which would facilitate foreign funds to participate in what’s expected to be the country’s biggest initial public offering.

The FDI will be under the so-called automatic route to expedite the capital raising process, the official said, declining to be identified because the information isn’t public. Investors can pick up the stake without the government’s approval under the automatic route.