Life Insurance Corporation of India (LIC) would not be allowed to increase its stake to more than 10% in Indian companies. But, the LIC can retain the stake in companies where it already holds more than 10% of the stake.
Insurance Regulatory and Development Authority (IRDA), an insurance regulator, does not allow insurers to hold more than 10% stake in any company. However, the IRDA has not asked LIC to trim the stake in firms, where it is in excess of 10%, but, LIC has been asked not to buy more than 10% of stake in future.