The Kerala Legislative Assembly on Wednesday passed a unanimous resolution, expressing concern over the Centre’s decision to sell stakes in insurance giant LIC and urging it to retain the institution, which has played a key role in the development of the nation.
Chief Minister Pinarayi Vijayan, who proposed the resolution in the assembly, said that leaving the insurance giant to the interests of private players would not be beneficial for the country and therefore the union government should reconsider their decision. “The union government is trying to justify its act by propagating that only 5% of the shares will be sold through an initial public offering (IPO) and that is not privatization. But it is clear that the sale of shares is the first step towards privatization and that is the real objective of the government,” he said. private enterprises and to ensure that insurance coverage is extended to the weaker sections and backward areas of the country Such an institution is being privatized without giving opportunity for discussion or detailed scrutiny in parliament, he said and criticized the Center for amending the LIC law by including it in the finance bill.Quoting figures, the chief minister also said that the giant l public sector insurance had so far invested Rs 36.76 lakh crore for the benefit of society and that this gigantic source of resources would be ended with privatization.
The Center in February had filed draft documents with capital market regulator SEBI to sell a 5% stake in insurance giant LIC through an initial public offering. The IPO is a 100% offer for sale (SFO) by the Government of India and no new issuance of shares by Life Insurance Corporation (LIC).
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