The government is going ahead with the LIC IPO, said Nirmala Sitharaman. She was addressing a press conference. Sithaman said that though there were concerns raised over the potential fallout of the escalating tensions between Russia and Ukraine, the government is going ahead with the IPO. "There is a buzz in the market and there is interest for LIC IPO. We are going ahead with it," Sitharaman said. However, she said, "we are equally worried if the market situation is conducive."
The draft red-herring prospectus for the LIC IPO was released on February 13. The offer is for the sale of up to 316.25 million shares or around 5 percent held in the Life Insurance Corporation of India by the Centre.
Sitharaman said the release of DRHP has fueled interest for the LIC IPO. "I think the way it is crafted, it has generated a lot of interest," she added.
Application for new SEBI chief
With the SEBI in the eye of the storm with regard to Chitra Ramakrishna and the co-location case, the Finance Minister Nirmala Sitharaman in a press conference announced that the process for appointing a new chief for SEBI is underway. "Process for calling applications for SEBI chief has happened," she said. The term of the current SEBI chief Ajay Tyagi ends of February 28.
Sitharaman, is in Mumbai on a two-day visit. The finance minister is meeting industry, trade and financial market stakeholders since February 21.
Rising crude prices
On being asked about the spike in global crude oil prices, Sitharaman said that increasing crude prices is a challenge. The FM said the rising price was being discussed at the meeting on financial stability. "We will keep a watch on it," she said.
"The prime minister had cut fuel tax before Diwali in response to calls from the public. The problem is that fuel prices are high because of global supply issues," she said, adding, "what oil marketing companies do (with fuel prices), I cannot answer."
NSE issue
Nirmala Sitharaman did not make any comment on the National Stock Exchange (NSE) colocation case. The finance minister said, she could not comment whether adequate regulatory action was taken in the case. "On NSE, I have no comment to make on whether there was an adequate correctional step taken. I have no view this way or that until I get to the bottom of what is available before me. I am looking into it, but I won't be able to comment on it," she said.
Earlier, in an interview to the Economic Times, Sitharaman said, "The NSE episode is a classic example of absolutely opaque, discretion-based decision making, beyond the realm of law and governance."
GST Council
The finance minister said, "There is no adversarial relationship between states and the centre in the GST Council." As per the GST Act, 14 percent compensation was to be given for five years to states which were extended. Sitharaman said, she had no comment on whether compensation cess would be extended further or at what rate.
"GST Council has itself decided that compensation cess will continue to be collected until March 2026. This will make up for the shortfall until now. This extension in GST compensation collection will also be used to pay interest on the borrowed money," Sitharaman said.
