Tuesday, December 15, 2009

LIC PUMPED IN Rs. 26,000 CRORE IN EQUITIES

Life Insurance Corporation of India (LIC), has pumped around Rs. 26,000 crore into the equities
markets (April 2009-October 2009). In comparison, overseas funds during the same period have bought Indian stock worth about $16 billion. The largest insurer in the country has also increased its
investments in non convertible debentures of many blue chip companies and has invested a little over Rs 17,000 crore in the same period. NCDs are structured debt product that cannot be converted into equity shares of the issuing company but carry a high interest rate. The life insurer has also disbursed close to Rs 5,000 crore towards various infrastructure projects including power, roads, airport and education in the current financial year.

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