Q. What recent investment decision has LIC, India's leading insurer, made in the financial sector?
Answer:
Allocating funds to a National Housing Bank-promoted company
Notes: Life Insurance Corporation of India (LIC) recently disclosed in a regulatory filing that its board has granted approval to acquire up to a 10% stake in a newly established company backed by the National Housing Bank (NHB). The investment aims to focus on residential mortgage-backed securities and will be executed through equity contributions in multiple phases. NHB, established under the National Housing Bank Act, 1987, operates as an All-India Financial Institution (AIFI) wholly owned by the Government of India. The institution's primary objective is to function as a key agency promoting housing finance institutions at both local and regional levels, providing financial and other forms of support to such institutions.