Life Insurance Corporation of India (LIC) is planning to invest Rs. 500 billion in equities in the financial year 2012-13.
LIC is also aiming to increase its investment in public sector units (PSUs) as government has instructed it to prepare for divestments. LIC has earmarked Rs. 200 billion for upcoming PSU share sale, the media reports added.
According to the Insurance Act, equity exposure in a single entity is limited to 10%. LIC can invest up to 10% of the capital employed by the investee company, or 10% of the fund size in a corporate entity, whichever is lower. The capital can be invested in share capital, free reserves and debentures or bonds.
http://www.indiainfoline.com/Markets/News/LIC-to-invest-Rs.-500-bn-by-FY12-13/5496713607
