As per rules of Securities and Exchange Board of India, foreign portfolio investors (FPI) are permitted to buy shares in a public offer. FDI policy would have to be tweaked for FII/FPI investment in this IPO as LIC is a corporation and not an insurance company.
"It is very important for India to push forward on listing LIC. This IPO will guide the government on the next steps that they need to take to be a viable global financial market, which has foreign investors" said Tom Masi, co-portfolio manager at US-based GW&K Investment Management.