The government on Tuesday said it is investigative to allow insurance companies to record after 5 years of operation, as an alternative of the current 10-year average, Parliament was informed.
Minister of State for Finance Namo Narain Meena said in a written reply to the Rajya Sabha. ”The issue of dropping the lock-in period of insurance companies for preliminary public offer (IPO) is under examination in consultation with the Insurance Regulatory and Development Authority (IRDA) and other stake holders,”
He, however, said that a last decision on this matter has not been taken yet.
Last month, IRDA had said that the primary public offer instruction for the insurance sector is likely to come out in April.
IRDA chairman J Hari Narayan had said.” The IPO guidelines might take a month-time and SEBI will take the final call,”
Several private sector insurance companies, as well as Reliance Life Insurance, have shown interest in beating the capital market to increase its resource base.
As per the Insurance Act, promoters having 26(%) per cent stake can relieve of equity after 10 years of process of the company.
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Tags: Insurance, Insurance Companies, Reliance Life Insurance