MUMBAI:
Gone are the years when LIC, at the behest of the government, used to anchor
troubled stock markets. Today, the life insurance company have a authorization from ULIP
investors to purchase shares. Life
Insurance Corporation of Republic Of India have already purchased equity shares worth Rs
12,000 crore in the marketplaces this fiscal, with 80 per cent of its new business
premium coming from unit of measurement linked coverage merchandises (ULIPs). "Our investing in equity has
been Rs 12,000 crore this financial and Rs 32,000 crore in debt as on August 31,
2007," LIC's President Deoxythymidine Monophosphate Second Vijayan said on Friday after presenting the fillip and
financials for 2006-07. Birla
Sun Life Insurance pioneered ULIPs in Republic Of India just four old age back and LIC's first
ULIP merchandise was introduced in early 2005. Driven by ULIPs, LIC's
investment in equity marketplaces is put to duplicate this financial if current demand
continues. Meanwhile, the
total purchases of LIC in the stock marketplace this twelvemonth had already touched Rs
19,700 crore as compared to Rs 24,000 crore in the full financial of 2006-07. Besides entire ULIPs fund
investment of Rs 14,000 crore in marketplace this fiscal, another Rs 5,700 crore
exposure in marketplaces represented traditional products. Under ULIPs, up to 80 per cent
fund gathered by LIC could have got exposure to equity marketplaces in direct contrast to only 8
to 10 per cent exposure taken for traditional products. LIC's sum investing in the
capital marketplace as on March 31 stood at Rs 1,24,643 crore.