Have the Tatas and AIG submitted their reports and do you see AIG selling its stake in life and non-life insurance firms to the Tatas?
No, AIG India has not yet submitted the report. However, we do not see the situation arising, where AIG has to sell the stake in Tata AIG Life and Tata AIG General. If AIG had to sell its assets, it would have done that before it approached the US Federal Reserve. The loan that AIG has received from the US Fed, compared to their assets, is small. AIG may have a cash-flow problem, but they are not that stressed out and so I do not anticipate AIG selling stakes in the two insurance companies in India. Life Insurance Corporation (LIC) wants a higher limit on equity investment and has also sought other flexibilities. What have you decided? The new investment norms will apply to future investments of LIC and will not apply retrospectively. The LIC chairman and his team met us to tell us about the constraints they will face, given the volume of investment lined up. Maintaining the prudential norms for exposure is very important. We do not want our insurance firms to be over-exposed. We want
