22nd January, 2011
Insurance watchdog Irda today said the guidelines for public float of life insurance companies will be ready this fiscal, while the non-life may take more time. “Initial Public Offering (IPO) guidelines for life insurance companies will be out soon. Certainly before this fiscal. Non-life will take time,” Insurance Regulatory Authority of India (IRDA) Chairman J Hari Narayan told reporters here.
In October last year, market regulator Sebi had approved life insurance companies to issue IPOs.
As per the draft guideline compiled by Irda, insurance companies that are in operation for the last 10 years would only be eligible for coming out with IPOs.
“Companies will meet the 10-year deadline by July-August this year. The 10 years (in business) clause stands. As law stands 10 years is 10 years. Companies can go ahead with the IPO without the passage of Insurance Bill,” he said.