Question
a.
LIC can invest up to 20% of the capital in a single company.
b.
LIC is not subject to any investment caps.
c.
LIC Act 1956 allows LIC to invest up to 30% of the capital in a single company.
d.
LIC can hold up to 25% stake in companies.
Posted under IC 89 Management Accounting
Interact with the Community - Share Your Thoughts
Uncertain About the Answer? Seek Clarification Here.
Understand the Explanation? Include it Here.
Q. What is the significance of the LIC Act 1956 regarding investment caps for LIC (Life Insurance Corporation of India)?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
Q. What change has the government approved regarding LIC's investment cap?
View solution
Q. How long is the tenure of the Reliance Infrastructure NCOs in which LIC invested?
View solution
Q. What type of investment opportunity do NCDs provide for debt investors like LIC?
View solution
Q. What competitive advantage do issuers have when offering NCDs to LIC?
View solution
Q. What is the maximum allowable exposure to venture funds and AIFs combined for a life insurance company?
View solution
Q. What is the minimum percentage of Category II AIFs that should be invested in infrastructure entities, SME entities, venture capital undertakings, or social venture entities?
View solution
Q. Why is investment income important for insurance companies?
View solution
Q. What are the two broad categories of investment avenues?
View solution
Q. How is the Rate of Return on an investment determined?
View solution
Q. How is Risk on Investment defined?
View solution
Q. Why is marketability/liquidity considered an important factor for investment decisions?
View solution
Q. What are the three types of Tax Benefits associated with investments?
View solution
Q. What are Government Securities also known as?
View solution
Q. What is the recommended reporting structure for the Investment Department in an insurance company?
View solution
Q. How is data transfer between Front Office and Back Office recommended to be carried out?
View solution
Q. What is emphasized regarding the integration of multiple Data-Entry Systems in investment functions?
View solution
Q. What role does the Chief Financial Officer (CFO) play in the reporting structure of the investment department?
View solution
Q. What is the purpose of the Authority Matrix?
View solution
Q. What is the purpose of the Maker/Checker procedure?
View solution
Q. What is the role of the Cash Management System (CMS) in managing liquidity risks?
View solution
Recommended Subjects
Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.
Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!