India Likely To Block Chinese Investment In LIC IPO: Report

The government wants to prevent Chinese investors from buying LIC shares because of the risks involved. However, no final decision has been taken on this matter so far.

Life Insurance Corporation (LIC)

New Delhi: The Modi government is preparing to crack down on China. The Government of India wants to stop Chinese investors from buying shares in Life Insurance Corporation (LIC). LIC's IPO is set to arrive in India in the next few months. The Modi government is considering allowing foreign investors to buy. But it wants to prevent Chinese investors in buying LIC's IPO.

News agency Reuters quoted senior government officials and bankers as saying that the Indian government wants to stop Chinese investors from buying LIC shares. The Centre is also planning a new law specifically for this purpose. The government believes that Chinese investment in companies like LIC could pose risks.

The government wants to prevent Chinese investors from buying LIC shares because of the risks involved. However, no final decision has been taken on this matter so far.

Indo-China Border Dispute

Last year, there was a clash between Indian soldiers and Chinese soldiers on the border in the Galwan valley. Many Indian soldiers were martyred during this clash. India has been taking a tough stand against China since the incident. India has also shut down several Chinese apps in India, including the much-talked-about app TikTok.

A government official said that after the border clash between China and India it cannot be business as usual. Seeing the current situation, Chinese investors will be prevented from buying LIC's IPO. The government will introduce LIC's IPO by March next year. The government will sell 5 to 10 per cent stake of LIC. The administration is expected to raise around Rs 1 lakh crore.