Press Information Bureau
Government of India
Cabinet Committee on Economic Affairs (CCEA)
18-January-2017 15:10 IST
Cabinet approves Listing of Government owned General Insurance Companies at the stock exchanges
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its ‘in principle’ approval for listing the following five Government owned General Insurance Companies in the stock exchanges. These are:
(i) The New India Assurance Company Ltd.
(ii) United India Insurance Company Ltd.,
(iii) Oriental Insurance Company Ltd.,
(iv) National Insurance Company Ltd. and
(v) General Insurance Corporation of India.
The shareholding of these Public Sector General Insurance Companies (PSGICs) will be divested from 100 percent to 75 percent in one or more tranches over a period of time. During the process of disinvestment, existing rules and regulations of Securities and Exchange Board of India (SEBI) and Insurance Regulatory and Development Authority of India (IRDAI) will be followed.
Listing of (PSGICs) is likely to yield the following benefits:
The Finance Minister in his Budget Speech for 2016-17 had announced that public shareholding in Government-owned companies is a means of ensuring higher levels of transparency and accountability; and to promote this objective, the general insurance companies owned by the Government will be listed on the stock exchanges.