The government has granted LIC a one-time exemption to achieve the minimum public shareholding requirement within 10 years. LIC, the country’s largest insurer, was listed in May 2022. The government had sold a 3.5% stake in LIC through an IPO, but still holds a 96.5% stake in the company. This exemption is a result of the government amending regulations for listed state-run companies that do not need to comply with the rule if the government decides it is in the public interest.

The Life Insurance Corporation of India (LIC) has been given a deadline extension until 2032 to adhere to the 25% public shareholding rule, according to the Securities and Exchange Board of India (SEBI).