BPCL & CONCOR in limelight; IPO for LIC, FDI in insurance sector and more
The measures for boosting up the insurance sector were also highlighted during the presentation of Budget 2021. Some proposals were made to amend the Insurance Act 1938.
Finance Minister Nirmala Sitharaman proposed to increase the permissible limit for foreign direct investment (FDI) in insurance companies to 74 per cent from 49 per cent. This will further boost up foreign ownership and control in insurance companies.
An IPO of LIC is expected to debut this year.
The government is expected to privatise two banks and one general insurance company in FY22. The government will complete the divestments of BPCL, CONCOR, and SCI in FY21-22.
The stock of IDBI Bank, in which, LIC holds a controlling stake, jumped by around 11.35 per cent on Monday.
The shares of General Insurance Corporation of India jumped by 4.96 per cent, ICICI Lombard General Insurance Company rose 1.08 per cent, HDFC Life Insurance Company gained 1.90 per cent, SBI Life Insurance Company increased by 1.71 per cent, etc.
CONCOR surged 2.53 per cent while BPCL inched higher by 2.19 per cent.