Role of life insurance corporation of India in the goverment's divestment of public sector undertakings

Abstract

We are trying to study the short term and long term investments made by Life Insurance Corporation of India (LIC) and analyze the possibility of provision of price support to public sector undertakings (PSUs). LIC invests its massive amount of assets into various corporations. One of its major activities is to provide long-term finance to entities through corporate term loans, subscription to bonds and debentures, AIFs and consortium lending. It maintains a portfolio of investments that include both private and public entities. We plan to study the variation in investments made and stakes held by the LIC over time and perform an analysis to support/ reject our theory that LIC supports PSUs.