Nirmala Sitharaman says government to go ahead with LIC IPO

By Team Newsable | First Published Feb 22, 2022, 8:01 PM IST

On February 13, the draft red herring prospectus (DRHP) of the LIC IPO was filed with market regulator SEBI. The government intends to sell up to 316.25 million shares, or nearly 5% of the life insurance giant.

Finance Minister Nirmala Sitharaman said on Tuesday that the government would proceed with the LIC's initial public offering (IPO). The minister told a press conference in Mumbai that there is a lot of buzz and interest in the market for the LIC IPO and that it will go ahead. On February 13, the draft red herring prospectus (DRHP) of the LIC IPO was filed with market regulator SEBI. The government intends to sell up to 316.25 million shares, or nearly 5% of the life insurance giant.

When asked about the recent increase in global crude oil prices, Sitharaman stated that rising crude prices are a challenge discussed at the meeting on financial stability and will keep an eye on it. Crude oil prices have recently risen as a result of rising tensions between Russia and Ukraine. Russia is one of the largest crude oil suppliers outside of the OPEC oil cartel.

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Sitharaman stated that the government is closely monitoring the Russia-Ukraine crisis. When asked about the impact on trade, the finance minister stated that the Russia-Ukraine impact has yet to be felt and that the government is taking precautions to ensure that our exporters do not suffer.

When asked about the extension of compensation cess collection, the finance minister stated that the GST council had decided to extend compensation cess collection until March 2026. She said this had been decided to make up the difference in compensation collected and pay the interest on borrowed money.

When questioned about the current issue against the former MD and CEO of the National Stock Exchange (NSE), Sitharaman stated, "Although you may see that allegations surrounding the NSE affair are well-established, I do not want to pre-empt the process. I'm going through the information now and will return later."

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