It is a letter from E A S Sarma, Former Secretary t Govt of India to Union Finance Miniser
06/03/2022
I feel distressed at the Ministry doing an accounting jugglery to transfer the bulk of the policyholders’ funds to the shareholders’ account by splitting the consolidated Life Fund, to benefit the stock market investors, at the cost of the policyholders, whereas in all fairness, it is the policy holders who ought to own the Corporation predominantly, as the government’s contribution to its growth has been marginal. It is ironic that policyholders’ window has been restricted to a mere 10% of the equity to be disinvested, whereas the rest of the 90% has been thrown open to the stock market investors, out of whom 20% has been opened up for foreign investors.