FM Nirmala Sitharaman: LIC IPO on track despite volatility

Union finance minister Nirmala Sitharaman on Tuesday said the government will go ahead with the planned initial public offering (IPO) of Life Insurance Corp. of India (LIC), even as Russian forces massing near Ukraine's borders throw global markets into turmoil.

The draft red-herring prospectus (DRHP) of LIC IPO was filed with Securities and Exchange Board of India (Sebi) earlier this month, with the government planning to sell up to 316.25 million shares or nearly 5% stake in the life insurance giant.

Sitharaman, who is in Mumbai on a two-day visit, has been holding post-budget discussions with industry, trade and financial market stakeholders.

On being asked whether the government will consider tax relief on crude oil, the FM said, "In Financial Stability and Development Council (FSDC) when we looked at the challenges to financial stability, crude was one of them. International worrisome situations where we actually voiced that we wanted a diplomatic solution for the situation that is developing in Ukraine, all these are headwinds. Crude is one of the important considerations. We'll have to see how it goes. We are keeping a watch."

On the corporate governance lapses at the National Stock Exchange outlined in a recent Securities and Exchange Board of India (Sebi) order, Sitharaman said she could not comment on whether adequate regulatory action was taken. "On NSE, I have no comment to make on whether there was an adequate correctional step taken. I have no view this way or that until I get to the bottom of what is available before me. I am looking into it, but I won't be able to comment on it," she said.

On the row between the Centre and states over the payment of compensation to the latter, Sitharaman said there is "no adversarial relationship" between the two sides.