10 yrs biz track for insurers to launch इपोस
New Delhi: Insurance regulator IRDA is not in favour of allowing initial public offers (IPOs) by life insurers who have been in business for less than ten years, a condition holding up the IPO guidelines for the sector.
The companies who have been operational for less than ten years, but want to come out with IPOs, have been lobbying hard against this rider, but have not succeeded in their efforts so far. Industry sources said that this is among the key issues delaying the IPO guidelines.
"Insurers can come out with IPO only after completion of 10 years of operations," a senior official with Insurance Regulatory and Development Authority (IRDA) said.
As per the Insurance Act, promoters having a 26 per cent stake can offload equity after 10 years of operation.
However, the legislation empowers the government to reduce the mandatory waiting period before tapping the capital market.
Many companies want the norm to be relaxed so...
No comments:
Post a Comment