LIC MD and CEO, Siddhartha Mohanty urges RBI to introduce 100-year govt bonds
According to Managing Director and Chief Executive of LIC Siddhartha Mohanty, entire life plans sold by the insurer demand long-term bond investments.
The largest state-run insurance company in India, LIC, has asked the Reserve Bank to add long-term government bonds, including 100-year paper as well—a top official said on Tuesday. According to Managing Director and Chief Executive of LIC Siddhartha Mohanty, entire life plans sold by the insurer demand long-term bond investments.
The RBI has approved a 40-year bond as well as approval to 20–30-year bonds, he said. Furthermore, he noted that although several nations issue 100-year bonds for the worldwide market, India has not yet adopted such bonds because of low demand and poor activity on the secondary market.
Mohanty said LIC has been quite active in the G-sec (Government Security) investments and added that the insurer has been subscribing to around a fifth of the issuances.
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