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Government Grants LIC Time till 2032 to Achieve 25% Public Shareholding.

Economy & Business | Dated: 20 Dec 2025

The Ministry of Finance has granted the Life Insurance Corporation of India (LIC) a one-time exemption to achieve the mandatory 25% Minimum Public Shareholding (MPS) within 10 years of its listing, i.e., by May 2032. Originally, listed companies are required to meet this norm within 3 years.

🎯 Key Highlights:

  • Currently, the government holds 96.5% stake in LIC.
  • This extension provides relief to LIC from potential regulatory actions and allows for a staggered stake sale.
  • The decision aims to prevent any adverse impact on LIC's stock price due to forced large-scale divestment.

💡 Other Important Facts:

  • Entity: Life Insurance Corporation (LIC).
  • Goal: 25% Minimum Public Shareholding.
  • New Deadline: May 2032.

📚 Test Your Knowledge:

The government has extended the deadline for LIC to achieve 25% Minimum Public Shareholding (MPS) to which year?

Correct Answer: 2032

🚀 Quick Recap:

About LIC

  • Chairperson – Siddhartha Mohanty
  • HQ – Mumbai