In an effort to modernize its largest insurer post a disappointing stock market debut, India is focusing to appoint a private sector professional as the maiden chief executive of the Life Insurance Corporation (LIC) of India.
It is said by one of the government authorities that the government is looking to thicken the eligibility criteria for appointment of LIC CEO so that private sector candidates could apply. Chairman is now heading the insurer but that post will be expelled at the time of the termination of current incumbent.
Post this, a chief executive from the private sector will be appointed by the government. The initiation will result in more opportunities and render positive signs to shareholders. Since its listing in May 2021, the share price of the insurer has taken a beating. It trades thirty per cent lower than the price at which the shares were distributed, wiping off approximately $24.31 billion in investor wealth.
Basically, private entities pay more than the public sector. The directorate was taking further changes of the law into an account while a decision on appointing from the private sector had been made initially.