LIC, as the state-owned company is known, has bailed out the government before. It bought shares in state-owned banks in 2009. In 2010, it bought the government’s stake in a mining firm. This time, it is injecting a billion dollars into some state banks. It has also bought out part of the government’s stake in an oil firm. Taxpayers should have been outraged at LIC’s decision earlier this month to buy $2.5 billion of overpriced shares in the Oil and Natural Gas Corporation (ONGC). Analysts believe the government sold them at a 5 to 7 percent premium to the market price of 283 rupees [$5.67]. The shares were trading at about 282 rupees on Tuesday.
(Ref: Insurance Journal: News) Read more...
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