The finance ministry has allowed India's largest insurer Life Insurance Corporation of India (LIC) to invest up to 30% in a company against the earlier limit of 10%.
Banking Secretary DK Mittal said that a notification on relaxing investment cap has been issued. LIC had been requesting to invest more than 10% that it is currently allowed because it has a huge reserve of cash.
LIC has a more-than 10% investment in several companies. The finance ministry has finalized the notification whereby LIC can invest up to 30% in a listed company.