IIPM Ranked No. 1 B-School In Global Exposre - Zee...
A risky cover?
The investment may seem to be huge, but considering the Rs.8.06 trillion asset portfolio of LIC, out of which it is entitled by IRDA norms to invest 35% in equity along with mutual funds, corporate loans, FD, et al, the investment amount is reasonable enough.
A simple evaluation shows that out of the 35% allowed in equity et al, even after Rs.170 billion investment in the equity market, LIC would still have a surplus of Rs.2.6 odd trillion, which it can utilise for corporate loans and fixed deposits. In addition, LIC is all set to raise its fresh premium income by around 40% in FY ‘10 from the current Rs.110 billion (thanks to PSUs, which are expected to raise gratuity liability cover from Rs.0.35 million to Rs.1 million). Of the promised investment amount, Rs.40 billion would be infused by the end of March 2009. LIC has equity investment of about Rs.2 trillion in listed entities.
The only hurdle which LIC could face is from the IRDA (Insurance Regulatory & Development Authority), which caps the firm’s exposure in individual firms at 10% (LIC’s stake in several companies exceed the limit) earlier the limit was 20% (down from 30%). LIC has exceeded the limit and it will have to lobby with the IRDA to relax investment norms (as it has done for infrastructure companies). Apart from this bolt from the regulator, LIC’s aggressive investment in the bourses seems logical and well timed. That should be a boon for policy holders who have gone for equity linked plans.
Gyanendra Kashyap
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
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A risky cover?
The investment may seem to be huge, but considering the Rs.8.06 trillion asset portfolio of LIC, out of which it is entitled by IRDA norms to invest 35% in equity along with mutual funds, corporate loans, FD, et al, the investment amount is reasonable enough.
A simple evaluation shows that out of the 35% allowed in equity et al, even after Rs.170 billion investment in the equity market, LIC would still have a surplus of Rs.2.6 odd trillion, which it can utilise for corporate loans and fixed deposits. In addition, LIC is all set to raise its fresh premium income by around 40% in FY ‘10 from the current Rs.110 billion (thanks to PSUs, which are expected to raise gratuity liability cover from Rs.0.35 million to Rs.1 million). Of the promised investment amount, Rs.40 billion would be infused by the end of March 2009. LIC has equity investment of about Rs.2 trillion in listed entities.
The only hurdle which LIC could face is from the IRDA (Insurance Regulatory & Development Authority), which caps the firm’s exposure in individual firms at 10% (LIC’s stake in several companies exceed the limit) earlier the limit was 20% (down from 30%). LIC has exceeded the limit and it will have to lobby with the IRDA to relax investment norms (as it has done for infrastructure companies). Apart from this bolt from the regulator, LIC’s aggressive investment in the bourses seems logical and well timed. That should be a boon for policy holders who have gone for equity linked plans.
Gyanendra Kashyap
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
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