LIC - Keep some money for my policy maturity too please...

LIC buys 4.6% of the ONGC auction out of the 5% which was opened for auction by the Govt.
The Govt price was 290 Rs (already at a premium to market value).
The average bid by LIC came at 303 Rs (huh......)

LIC made a loss of 900 Cr in two day as shares of ONGC closed @ 280 Rs

Read:
http://www.moneycontrol.com/news/business/valuelic-investmentongc-dips-by-rs-900cr2-days_676359.html#toptag

So:
- We buy LIC policing trusting LIC to put it in sound savings
- Govt needs money (after our taxes)
- Govt directs LIC to buy these stakes
- LIC follows directives and loses money
- Net Net we lose money since its our investment

Is this bad?
No.

Then whats bad?
Govt may look for fiscal deficit every year and more and more stake will be auctioned (of PSUs)
If no one buys, guess who will buy?

uh oh.

Reminds me of some auto ad on TV where the guy looks in the mirror and slaps himself ....*slap*