Singapore says 'no' to LIC subsidiary

Singapore has denied permission to India's largest financial institution, Life Insurance Corporation of India, to set up a subsidiary there until it has a credit rating from an international agency, according to a report.

About a year ago, LIC had sought Singapore's approval to set up a life company to sell insurance policies, and talks with the local authorities were progressing well, according to The Economic Times report.

The state-owned insurer, which runs a representative office in Singapore, was hopeful of getting a licence. But during the final round of negotiations, Singapore authorities insisted that the parent's rating was a prerequisite for doing business in the island state. The decision may not go down well with New Delhi.