LIC's prudential investment norms at par with private insurers

The Insurance Regulatory & Development Authority (IRDA) Board has brought the Life Insurance Corporation of India's (LIC) prudential investment norms at par with private insurers. LIC had the advantage whereby it could invest up to 30% of its portfolio in a single company; as against only 10% for private insurers. With the Board increasing this cap to 25% for private insurers, they have also reduced LIC's cap to make for a level playing field. It will be recalled that this largesse had allowed the public sector behemoth to pick up over 27% in Corporation Bank.