India Is Said to Consider Allowing FDI in Life Insurance Corp

India is considering allowing foreign direct investment in Life Insurance Corporation, according to a person familiar with the matter, which could enable a single overseas investor to buy a large stake in the firm that’s headed for a mega-IPO.

Any strategic investment would be subject to a cap, though it’s unclear at what level that would be set, the person said, asking not to be identified as the deliberations are private. Participants at a meeting earlier this month noted a 20% FDI limit on state-run banks, the person said.

Allowing FDI in LIC would permit so-called strategic investors such ...