LIC weighs regulatory forbearance before IFRS shift; board approval pending
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Life Insurance Corporation of India (LIC) is reviewing the option of regulatory forbearance before implementing International Financial Reporting Standards (IFRS), a top official said on Wednesday.
A final decision on migrating to the new system will be taken after securing board approval, the official said.
The life insurance giant indicated that it has already engaged with the regulator on the matter and is currently evaluating the transition framework available under the regulations.
"IFRS ... we will be announcing whatever we are doing. I think we have already given our viewpoint to the regulator. Once our board gives the approval, we will be able to declare," R. Doraiswamy, managing director and chief executive officer of LIC, said on Wednesday during the launch of MyLIC application here.
The company clarified that any formal announcement on the adoption timeline would follow internal governance processes, including approval from its board.
The official also acknowledged that the regulatory framework allows insurers flexibility during the transition phase and that the company is studying the provision before taking a final call.
The Insurance Regulatory and Development Authority of India (IRDAI) had granted a 12-month forbearance to insurers transitioning to the new Indian Accounting Standards (Ind AS).
On March 30, the regulator during its 135th Authority meeting approved amendments mandating insurers to prepare financial statements under Ind AS from April 1, 2026. However, it allowed a one-year regulatory forbearance for companies unable to immediately comply with the new framework.
Further, Doraiswamy said that the record date for its recently announced bonus share issue will be finalised only after shareholders grant the necessary approvals.
Earlier this week, the company said its board has approved a bonus issuance of equity shares in a 1:1 ratio. The bonus issue will be undertaken by capitalising ₹6,325 crore from the reserves and surplus available with LIC as of December 31, 2025.
(Except for the headline, Fortune India has not edited the content of this PTI report.)