38.6c New Delhi, India, Wednesday, April 17, 2024

LIC’s IPO Opposed By Its Employee Union

By LawStreet News Network      04 February, 2020 11:02 PM      0 Comments
LIC’s IPO Opposed By Its Employee Union

The February 4th of 2020 will observe the employees' union of Life Insurance Corporation (LIC) going on a one hour strike to protest regarding the strong opposition toward the government's plan to sell a part of it's holding in the country's largest financial institution through a public offer. 

"The listing of LIC will certainly harm the economy and growth of our country. We vehemently opposes this move of the government and to protest and resist such act of the government, we have decided to go for lunch hour demonstration on Monday and one-hour strike on Tuesday as an initial response across the country" said SanjivK Gupta, All India Joint Secretary, National Federation of Insurance Field Workers of India

He also stated, "We vehemently oppose this move of the government. To protest and resist such an act of the government, we have decided to go for lunch hour demonstration on Monday and one-hour strike on Tuesday as an initial response across the country," 

Presenting the Budget on the 1st of February, 2020, the Finance Minister Nirmala Sitharaman said that LIC would be listed as part of the Government disinvestment initiative. The Government proposes to sell a part of its holding in the LIC through an Initial Public offering (IPO).

With such an announcement, the basic nature of state-owned LIC of India is apprehended to come to a disastrous change to affect crores of policy holders and the country as a whole. "The faith and trust bestowed on the LIC by the common people of India to save blindly their hard-earned money will be cracked,” he added.

Union members added that the foundation of LIC has been so strong that even after 20 years of opening up of the insurance sector it remained the market leader with more than 70% of the shares, competing with as many as 23 other life insurance companies. In fact, this financial year, the LIC has regained 6% market share and its growth is more than the industry growth. They have requested the government to reconsider its proposal. 

LIC was established in 1956, it is fully owned by the Central Government and holds the highest market share in the country's life insurance segment regime. 


Author: Dyuti Pandya 

Share this article:

User Avatar

Leave a feedback about this

Trending Judiciary
Baba Ramdev, Acharya Balkrishna offer to make public apology in SC for misleading advertisements

Baba Ramdev and Acharya Balkrishna offer public apology in SC for misleading ads, court deliberates acceptance.

16 April, 2024 01:57 PM
Trending Judiciary
Non-tear of the hymen is of no consequence in cases of penetrative sexual assault: Guwahati HC in POCSO case [Read Judgment]

Hymen tear or genital injuries are not a sine qua non to prove penetrative sexual assault, the Guwahati High Court has held in a case under the POCSO Act, 2012.

16 April, 2024 05:06 PM


Trending Business
SC sets aside judgment upholding arbitral award against DMRC [Read Judgment]

Supreme Court overturns arbitral award favoring Reliance Infrastructure subsidiary against DMRC, citing grave miscarriage of justice.

11 April, 2024 11:43 AM
Trending Political NEWS
Delhi HC rejects third plea for Arvind Kejriwal's removal as Delhi CM, blasts petitioner for abuse of judicial process [Read Judgment]

Delhi High Court dismisses the third PIL plea before it seeking Aam Aadmi Party leader Arvind Kejriwal’s removal as Chief Minister of Delhi, imposes Rs. 50,000 cost on petitioner.

11 April, 2024 03:29 PM
Trending Judiciary
Use of social media to interfere with administration of justice needs serious consideration: SC [Read Judgment]

Supreme Court warns against social media misuse in legal matters, cautions against prejudicial posts interfering with justice.

11 April, 2024 05:44 PM
Trending Legal Insiders
Two-day conference on April 13-14 on Technology and Dialogue between SC and Singapore

Explore AI's role in law at the India-Singapore Supreme Court conference on technology, enhancing judicial processes and access to justice, April 13-14, 2024.

12 April, 2024 06:16 PM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email