New Delhi. If you invest in the stock market, read this news carefully. According to the information, the Government of India is going to sell a large share of its stock in Life Insurance Corporation i.e. LIC and 5 public sector banks. Under the SEBI rule, the government will sell its shares in LIC and 5 banks. The government holds more than 90 per cent stake in LIC and these banks. Whereas, SEBI’s rule states that promoters shares in listed companies cannot exceed 75 percent.
The Government of India sold 3.5 per cent shares in LIC with 5.66 lakh crore market cap. Even after this, the Government of India holds 96.5 per cent stake in LIC. In LIC, the government will now have to sell the remaining shares till 2027. Along with selling LIC shares from the government, the Life Insurance Corporation will have to do public share holding at least 10 percent. Apart from LIC, the government will also have to reduce its shareholding to 75 per cent in UCO Bank, Punjab & Sindh Bank, Indian Overseas Bank, Bank of Maharashtra and Central Bank of India.
Currently, UCO Bank has 90.95 per cent of the Government of India, 93.85 per cent in Punjab and Sindh Bank, 94.61 per cent in Indian Overseas Bank, 79.60 per cent in Bank of Maharashtra and 89.27 per cent in Central Bank of India. All these banks earned more than 44 thousand crore profits in the quarter till June this year. Which is 11 percent more than last year’s profit. In such a situation, the Government of India can get a lot of money from investors by selling shares in these banks. It is believed that the Government of India can reduce its share holding in these five banks at this year or early next year. The Government of India still has more than two years to reduce share holding in LIC.
