Clause 122 - Substitution of section 5.

Capital structure and government majority preservation enable LIC equity issuance, policyholder reservation and market listing.

The substituted section on capital and new sections 5A-5F transform LIC into a share-capital corporation able to issue equity and other securities, require the Central Government to retain majority equity on a fully diluted basis (with a higher majority for a transitional period), permit issuance of shares to the Government for existing paid-up capital, and enable issuance to policyholders and employees. Transferability and registration are generally allowed but limited to protect government majority and limit individual holdings; voting rights for non-government holders are capped; registers and declarations of beneficial ownership are mandated; shares are deemed securities and registered members have nomination rights.