IRDA puts out IPO norms for general insurance companies

IRDA puts out IPO norms for general insurance companies
Insurance Regulatory and Development Authority (IRDA) has issued fresh guideline for general insurance companies looking to come out with an IPO must have atleast 1 years of prior experience. It also added that an acceptance or approval from the regulator is also a must.

Talking about the draft norms for initial public offering (IPO) of non-life insurers, IRDA said, "No general insurance company shall approach the SEBI for public issue of shares and for any subsequent issue ... without the specific previous written approval of the Authority."

According to the draft, an insurance company must disclose it financial position to the regulator, together with its capital structure and regulatory record before coming out with the share sale.

However, the powers to issue the orders to which the promoters shall dilute their respective shareholding and the shares that can be allotted to foreign investors remain with IRDA.

By September 30, general insurance companies are expected to come out with their comments regarding the draft.

Read more about: irda, ipo
Story first published: Thursday, September 20, 2012, 9:32 [IST]
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