Government of India's move to keep Chinese investors away from LIC's lPO

Mumbai: The government wants to keep Chinese investors away from Life Insurance Corporation of India's (LIC) initial public offerings (IPOs). It is learned that the government's intention has been exposed in view of the recent tensions between China and India.

LIC, which has assets of over 500 billion, plans to launch an IPO by the end of the current financial year. LIC has more than 50 per cent share in the country's life insurance market.

The government welcomes foreign investors in IPOs, but the government wants Chinese investors to stay away from them, sources said. LIC expects to raise Rs 500 billion through IPO.

Political tensions between the two countries have been running high since last year's clash between Indian and Chinese troops. Amid the tensions, India has banned a number of Chinese apps in the country, as well as limited Chinese investment in sensitive companies.

The government has also taken steps to reduce imports from China. The sources added that discussions are underway at various levels on how to curb China's investment in LIC.

Under current law, foreign investors cannot invest in LICs, but the government is considering allowing foreign investors to make limited investments in IPOs.

Even if it is possible for Chinese investors to apply for an IPO, it will not be possible to stop them in the secondary market, a government official said.