The government is considering allowing foreign institutional investment (FII) of up to 20 per cent in Life Insurance Corporation (LIC), according to a government source.
The listing of LIC is set to be India's biggest ever IPO, with the government aiming to raise up to Rs 90,000 crore from its stake sale.
The Union Cabinet had recently approved the disinvestment of equity in LIC and the process is on to appoint merchant bankers to launch the IPO.
The government has for the second time invited bids from law firms to advise it on the mega initial public offering of LIC.
A panel headed by Finance Minister Nirmala Sitharaman will decide on the size of the share sale.
For LIC's IPO, the Centre had amended the LIC Act of 1956. After the amendment, like any other listed company, the corporation, now governed by the Companies Act and markets regulator Act (post-IPO), has to prepare its quarterly balance sheet with profit or loss figures and make public, key developments.