The Insurance Regulatory and Development Authority of India (Irdai) has requested insurance coverage firms to go for itemizing to enhance their entry to capital, its Chairman Debasish Panda stated on Thursday.
The itemizing will assist insurance coverage gamers to lift capital for rising their enterprise and likewise deepening the insurance coverage penetration within the nation, he stated.
“We are asking insurance coverage firms to go for itemizing in order that they will have entry to the capital. Today, with the LIC’s itemizing, near 60 per cent of the market will get listed.
“That brings in a lot of transparency, disclosures and access to the market to raise capital. This will help them grow and our ultimate target of deepening insurance penetration will happen,” Panda, who took over the cost of Irdai Chairman final month, informed reporters.
The chairman was in Mumbai on a two-day go to beginning April 6 to fulfill varied stakeholders of the insurance coverage trade.
Panda, the previous monetary providers secretary, stated the insurance coverage regulator is nudging the gamers for itemizing and also will facilitate them within the course of.
“We will also ask them to give us a road map on what time they will be able to go for a listing. It is a multi-pronged strategy so that they have easy access to capital,” he stated.
The regulator can also be revisiting the present funding norms which have been laid down and can have a look at stress-free a number of the rules to take away any bottleneck for insurance coverage firms in getting extra capital, Panda stated.
In February this yr, the federal government had filed the draft pink herring prospectus (DRHP) with markets regulator Sebi for Life Insurance Corporation of India’s (LIC) preliminary public providing.
Sebi had authorized the mega IPO proposal of LIC in March.
The authorities is anticipating to garner over Rs 60,000 crore by promoting about 31.6 crore or 5 per cent stake in state-owned life insurer.