Life Insurance Corporation of India (LIC) has urged the Reserve Bank of India (RBI) to introduce long-term government bonds, including 100-year bonds, a top official revealed on Tuesday.
Mr. Siddhartha Mohanty, Managing Director and Chief Executive of LIC, stated that the insurer, which sells whole life policies, requires long-term investment instruments to match its commitments.
Currently, the RBI allows 20-year and 30-year bonds, with a 40-year bond recently approved. Mr. Mohanty expressed hope that 50-year and even 100-year bonds would be introduced soon, as discussions between LIC and RBI on the matter are ongoing.
He highlighted that many countries already issue 100-year bonds in global markets, but India has yet to introduce them due to limited demand and low secondary market activity.
Mr. Mohanty also emphasized LIC’s significant role in government security (G-sec) investments, stating that the insurer subscribes to over 20% of bond issuances.
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