The Union Cabinet Saturday approved foreign direct investment (FDI) of up to 20% under the automatic route in Life Insurance Corporation (LIC) of India, according to people aware of the development, paving for a smoother road ahead of its initial public offer planned for next month.
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%.
