IRDA INSURANCE INVESTMENT PROPOSALS

INDIAN insurance giant LIC is unlikely to change dramatically its investment strategy on the back of planned Insurance Regulatory and Development Authority (IRDA) rules. The proposals seek to impose a 10% cap on LIC’s investments in a single company. Reports suggest this may persuade the insure to reduce its holdings in some of the larger companies, but still continue to look at investing in other firms in which it holds smaller stakes. Already LIC has been buying into companies where it holds a substantially less than 10% share, including SBI, Bharti Airtel, Reliance Communications, RIL, Tata Steel, Bhel and Sterlite Industries.