LIC in talks with PSBs to sell Nomura stake in MF arm

More clarity on the issue is likely to come after the LIC Board meeting scheduled for October 28, reports a business daily.

Life Insurance Corporation (LIC) has reportedly started talks with public sector banks (PSB) to sell its 35% stake held by its Japanese partner Nomura in its mutual fund arm.

More clarity on the issue is likely to come after the LIC Board meeting scheduled for October 28, reports a business daily.

LIC reportedly does not want to increase its 45% stake in the MF joint venture any further.

According to the daily, Nomura India is unlikely to renew its five-year contract with LIC and is planning to completely exit its mutual fund business in India.

The five-year term comes to an end early next year.

The Japanese company holds a 35% stake in LIC Nomura MF, which had an AUM of a little over INR 11,157 crore as of September-end.

LIC's housing finance arm, LIC Housing Finance, holds a 20% stake in LIC Nomura MF.