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Government-owned Life Insurance Corporation of India (LIC) said on Thursday that the Finance Ministry has granted it a one-time exemption from the minimum 25 per cent public shareholding rule.

The rule states that an entity with a market cap of more than Rs 1 lakh crore must have a minimum 25 per cent public shareholding within five years of listing.

LIC listed on the bourses on May 17, 2022, which requires it to meet the 25 per cent public shareholding norm by 2027. However, the life insurance giant has been given an extension of 10 years from the date of listing and now has a May 2032.

"The Department of Economic Affairs, Ministry of Finance vide Office Memorandum dated December 20, 2023, has decided in public interest, to grant a one-time exemption to Life Insurance Corporation of India to achieve 25 per cent Minimum Public Shareholding (MPS) within 10 years from the date of listing ie, till May 2032 under Rule 19A (6) of the Securities Contract (Regulations) Rules 1957," the country's largest life insurance company said in a regulatory filing