Life Insurance Corporation (LIC) of India's stock shot up 4% in the morning session after market regulator Securities and Exchange Board of India (SEBI) provided more time to the company to achieve minimum public shareholding rules.

What Happened: LIC in a regulatory filing said that the market regulator granted the company three more years to achieve 10% public shareholding within five years of listing the company. Due to this, the revised timeline for the company to achieve 10% public shareholding is on or before May 16, 2027. 

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According to the shareholding pattern till March 2024, The Government of India, through the President of India holds 96.5% stake in LIC. Public Shareholders only have a 3.5% stake in the company. 

SEBI regulation mandates that every listed company should have a minimum public shareholding of 25%. 

In December, LIC had announced that the Department of Economic Affairs and Ministry of Finance had granted a one-time exemption to LIC to achieve the minimum public shareholding threshold of 25% within 10 years of listing til May 2032. 

LIC shares were listed in May 2022 after its IPO which was the largest in India. 

Price Action: LIC shares rose 4% to ₹971.85 in the morning session on Monday. 

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