LIC equity capital to be raised

The Union Cabinet has cleared a bill to raise the share of the LIC (Life Insurance Corporation) from Rs 5 crores to Rs 100 crores. Also a bill has been cleared for a comprehensive insurance amendment bill to provide for, among other things, an enabling provision to raise the FDI from 26% to 49% in private sector insurance companies. The approvals to the Bills were given on the basis of the recommendations of a group of ministers, which took into consideration the suggestions made by the K P Narashimhan Committee and the Law Commission.