LIC to review investment practices

The board of Life Insurance Corporation of India (LIC) is likely to review the insurer’s operations, including investment practices, in the wake of a series of controversies surrounding the pub LIC sector player.

Official sources indicated that given the increase in the size and scale of LIC’s operations and its large equity exposure, the company was trying to rework its investment and risk-management policies.

While checks and balances are in place, sources said it was time to modernise them. One option being considered is to put in place a “system of committees” to decide on the investments made by the company. This would be in line with the policy adopted by State Bank of India , where investments are vetted by a set of committees.

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