The government will go ahead with the planned initial public offer (IPO) of Life Insurance Corp of India (LIC) despite the market volatilies due to geopolitical developments, finance minister Nirmala Sitharaman said.

The government is keeping a close eye on global developments due to the tension between Ukraine and Russia and will like to see a diplomatic solution to the crisis, Sitharaman said.

She was in Mumbai for a post budget consultation with industrialists, bankers and also chaired a meeting of the Financial Stability and Development Council (FSDC).

“The LIC draft red herring prospectus (DRHP) is already out and we are seeing quite a buzz in the market about it. We are moving ahead with it like we did with Air India,” she said.

The government plans to sell 5% of its stake in LIC for around Rs 65,000 crore in what is the largest such issue from India valuing the insurance behmoth at about Rs 13 lakh crore. LIC is likely to be listed in the local markets before the end of March 2022.

Market volatilites due to the geopoliticial tensions and higher crude oil prices were discussed in the FSDC meeting but there were no extraordinary steps which were needed due to these developments as of now, Sitharaman said.

“It is difficult to say how crude oil prices will go. Yes there are headwinds and the government is watching the situation…the impact on trade due to the geopolitical crisis is yet to be felt but our exporters are aware of the situation and so is the ministry of external affairs. The government is watchful and we will protect the interests of our exporters,” she said.

The minister declined any specific comments on the National Stock Exchange (NSE) fiasco because the case is still developing.

“I am looking at the issues coming out but I cannot comment this way or that till I read the case fully,” she said.

Replying to a question the minister said that the govermment will announce a new chairman for the Insurance Regulatory and Development Authority of India (IRDAI), a post which has been vacant for more than nine months “as soon as possible.”

The government has also called for applications for the chairman of the Securities and Exchange Board of India (SEBI) and shortlisting of the candidates will be done by the end of the month, Sitharaman said.

Replying to a question the Department of Economic Affairs Secretary (DEA) Ajay Seth said that the government is committed to achieving its 6.9% fiscal deficit target for the current year ending March 2022.

“Our expenditure is at the normal rate as detailed in the revised estimates which also includes draw down of cash reserves. It also includes small savings and reserves. Whenever we feel that there is enough balances we will not borrow or postpone our borrowing. So its a very dynamic situation. But the market will be informed in advance of our intentions. There will be no surprises for the market,” Seth said.

He was replying to a query on the government’s year end borrowing plan after two bond auctions were cancelled in the last two weeks.

Seth also said that the government is in continuous consultations on India joining the global bond indices and all conditions except the taxation issues have been met. He did not give a timeline for the same.

Replying to a question, Sitharaman also refuted allegations the the government is using central agencies like the enforcement directorate (ED) to pressurise political opponents.