West Bengal chief minister Mamata Banerjee on Saturday slammed the central government's proposal to sell a part of its shares in LIC, describing it as a plan to 'ambush' the legacy of public institutions.

Union finance minister Nirmala Sitharaman earlier in the day said the insurance behemoth will be listed as part of the governments disinvestment initiative.

The Centre proposes to sell a part of its holding in LIC through initial public offer, she said, while unveiling the Union Budget 2020-21.

'I am shocked and appalled to see how the central government plans to ambush the heritage and legacy of public institutions. Its the end of sense of security. Is it also an end of an era?' the CM said in a tweet.

Established in 1956, LIC is fully-owned by the central government and has the highest market share in the life insurance segment in the country.