IPO-bound LIC chairman's tenure extended by the Govt for a year

According to insiders, the government has extended the chairman's term at the IPO-bound Life Insurance Corporation (LIC) by one year in order to ensure a smooth listing of the insurance behemoth.

In addition, the government has given Raj Kumar, one of the managing directors, a one-year extension on his contract.

According to the sources, M R Kumar would remain chairman of LIC until March 2023 as a result of the extension.

This is the chairman of the LIC's second extension. In June of last year, he was granted a nine-month extension in anticipation of LIC's planned initial public offering at the end of the current fiscal year.

According to sources, the government has prolonged M R Kumar's term from June 30, 2021, to March 13, 2022, when he will complete his three-year term.

In accordance with the Budget declaration, the government intends to list LIC during the current fiscal year.

Finance Minister Nirmala Sitharaman stated in her Budget Speech that the LIC initial public offering (IPO) will take held in 2021-22 as part of the ambitious?1.75-lakh crore disinvestment plan.