Don’t use LIC to prop up divestment

If the Reserve Bank of India (RBI) is the lender of last resort for the Indian Government, the Life Insurance Corporation of India (LIC) — with some prodding from the Government that owns it — seems to be imposing the title ‘saviour of last resort’ on itself. In March 2012, LIC bailed out ONGC’s share auction after it received tepid response from investors. LIC made a revised bid for 12 crore shares in the nick of time after a broker’s mistake led to the rejection of its earlier bid.

Read Full Story>>