Even as Life Insurance Corporation (LIC) is gearing up for a mega IPO through the present fiscal, the federal government has prolonged the retirement age for the submit from 60 to 62 as a part of a serious overhaul within the choice standards for the highest submit of the most important monetary establishment within the nation.
MR Kumar, Chairman, LIC, is now eligible to get an extension of 1 or two years following the change within the guidelines. Kumar, who was a Zonal Manager earlier than being elevated to the submit of the Chairman of the LIC on March 14 , 2019, was slated to retire on this June finish after reaching 60.
The new guidelines, which have been earlier proposed by the Ministry of Finance and authorised by the Appointments Committee of Cabinet, headed by Prime Minister Narendra Modi, on April 22, say, “The Chairman, LIC, may be appointed for a period of three years, which was earlier five years, or till he/she attains the age of 62 years whichever is earlier.” It shouldn’t be very clear now what number of years Kumar can be granted extension until a selected letter to this impact from the MoF reaches the company.
Another essential change within the new guidelines specifies that solely Managing Directors of company are eligible for the number of Chairman whereas underneath the sooner norms, MDs , govt administrators(EDs) and zonal managers (Selection Grade) have been all eligible to be a part of choice course of for the submit LIC chairmanship.
Further, the brand new rule clarifies that every one MDs in place on the date of emptiness no matter expertise as MD can compete for the chairmanship. Also, no requirement of residual service of such candidate on the date of emptiness of chairman is required.
The earlier rule was that senior officers with minimal one 12 months service as MD or two years’ service as ED or ZM (Selection Grade) can solely be thought of for the number of chairmanship of the company. They additionally wanted to have minimal two years of residual service on the date of emptiness. Analysts consider that other than the much-needed continuity that’s presently required on the high stage of LIC, which is, at current, making ready itself for an IPO — within the vary of Rs 50,000 crore to Rs 1 lakh crore — the federal government is laying down the principles for the appointment of LIC chairmanship in keeping with what it has already carried out within the case of chairmanship of SBI.
After Arundhati Bhattacharya, made chairperson of the financial institution in 2013, all officers who’ve been made chairman have been given tenures past 60 years. Dinesh Kumar Khara, 59, present chairman, has acquired a three-year tenure since October 2020. His predecessor Rajnish Kumar, on the age of 59, was appointed chairman for 3 years.
