Synopsis: The Life Insurance Corporation (LIC) of India witnessed a surge in its share price as SEBI extended the deadline for the company to achieve a 10 percent public shareholding to May 16th, 2027.
In a significant development in the Indian stock market, the share price of the Life Insurance Corporation (LIC) of India experienced a notable surge following the announcement by the Securities and Exchange Board of India (SEBI). The market regulator has granted LIC an additional three years to meet the mandatory requirement of maintaining a 10 percent public shareholding. This relaxation by SEBI has shifted the deadline for LIC to achieve this norm to or before May 16th, 2027.
Today's trading session saw strong buying activity in LIC shares, with the stock opening on a positive note at Rs 934 per share on the National Stock Exchange (NSE). It reached an intraday high of Rs 962 per share, marking an impressive rise of over 5 percent compared to the previous day's closing price of Rs 931 per share.
LIC promptly notified the Indian stock exchanges about SEBI's decision, stating, "SEBI has conveyed its decision to grant additional time of 3 years to LIC to achieve 10% public shareholding. Accordingly, the revised timeline for LIC to achieve this norm is on or before May 16, 2027."
The journey of LIC shares began on the Bombay Stock Exchange (BSE) and NSE on May 17, 2022. According to exchange regulations, LIC was initially required to achieve the 10 percent public shareholding norm by May 16, 2024. However, seeking additional time to meet this requirement, LIC appealed to SEBI, which subsequently granted a three-year extension. This extension aligns with Rule 19(2)(b)(iv) of the Securities Contracts (Regulation) Rules, 1957, facilitating LIC's compliance with the existing shareholding norms.
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Related Questions
1. What led to the recent surge in LIC share prices?
The recent surge in LIC share prices was driven by SEBI's decision to grant an additional three years for the company to achieve the 10 percent public shareholding norm.
2. How did SEBI's decision impact LIC's stock market performance?
SEBI's decision positively impacted LIC's stock market performance, leading to strong buying activity and a notable increase in share prices.
3. How does the extended deadline affect LIC's compliance with public shareholding norms?
The extended deadline allows LIC more time to achieve compliance with public shareholding norms, providing flexibility and alleviating immediate regulatory pressure.
4. How did LIC's share price perform in the intraday trading session?
LIC's share price opened positively and surged during the intraday trading session, reaching an intraday high and recording a significant rise.
5. What regulatory rule enabled SEBI to grant LIC an extended deadline?
The regulatory rule under Rule 19(2)(b)(iv) of the Securities Contracts (Regulation) Rules, 1957, enabled SEBI to grant LIC an extended deadline to achieve compliance with public shareholding norms.
