The government on Monday sold 10 per cent of its stake in the state-run refiner and fuel retailer, raising around $1.4 billion.

While LIC is a frequent back up for government sales, the sum it bought on Monday, amid a stock market rout, is likely to raise questions over the future of the sell-off programme. The government is seeking to raise as much as $11 billion by selling stakes in state-run firms this year.

Officials at LIC, whose stake has risen to 11.11 per cent in Indian Oil from 2.52 per cent according to Tuesday's filing after market hours to the Bombay Stock Exchange, did not immediately respond to requests for comment.
Life Insurance Corporation (LIC) of India, the country's largest investor, bought just under 86 per cent of shares sold by the government earlier this week in Indian Oil Corporation.