Under the current rules, insurance companies can get listed on bourses only after they finish 10 years of operations
The insurance sector regulator has said that guidelines to allow life insurance companies to raise funds from the capital market will be out by this month-end.
"The exposure draft (on IPO guidelines) has been released. We are waiting for the comments of various stakeholders including the public. I expect the comments should be in another week's time," Insurance Regulatory and Development Authority of India (IRDA) chairman J Hari Narayan told reporters here.
The final guidelines will certainly be out before the end of June, he said. In October 2010, SEBI had given the go-ahead to insurance companies for coming out with IPOs.
Under the current rules, insurance companies can get listed on the bourses after they finish 10 years of operations.
IRDA is likely to allow public float by only those companies, which are in the business for at least 10 years and have a track record of three successive years of profit.
As per the current practice, a bank is allowed to sell products of one each in a life insurance company, a general and a health insurance firm
Sector regulator IRDA has said today that it is considering a proposal to allow banks to sell products of two insurance companies each in life and non-life categories, a move that will help increase penetration. As per the current practice, a bank is allowed to sell products of one each in a life insurance company, a general and a health insurance firm.
"The committee (set up by the regulator) has recommended that banks should be allowed to tie up with two insurers. We are in the process of examining the recommendation," IRDA chairman J Hari Narayan told reporters on the sidelines of a seminar.
He was here at the launch of the IGMS (Integrated Grievance Management System), which is an online grievance portal for customers. The Insurance Regulatory and Development authority (IRDA) had in 2007 set up a committee to suggest ways to increase insurance penetration.
The regulator is looking to open up the distribution channel to help increase penetration of insurance products amidst the long-pending demand of insurers for relaxing the bank distribution channel.
To study the distribution channels' agency, bancassurance, referrals, direct sales etc-the regulator had set up a 10-member committee headed by former LIC chairman NM Govardhan in 2007.
The committee, which submitted a 60-page report in 2009, suggested various measures for increasing distribution.
During the 2010-11 fiscal, the new business premium (first year premium) of the life insurance industry grew by 14.5% to Rs1,25,800 crore.
Besides, the total premium of the 23 player life insurance industry increased by 8% as compared to Rs2,86,500 crore in 2010-11.
Addressing the company's shareholders at its 37th AGM, chairman Mukesh Ambani said that RIL's revenue has grown by 28% on year-on-year basis over the past 33 years since its IPO, while profit and market capitalisation have grown by 33% on an average every year during this period
Mumbai: Announcing a bullish stance on the company's financial position, Reliance Industries' (RIL) chief Mukesh Ambani today announced that the company would become debt-free on a net basis in the current financial year, reports PTI.
RIL had outstanding debt of Rs67,397 crore ($15.1 billion) as of 31 March 2011, as against Rs62,495 crore ($13.9 billion) a year ago.
At the same time, RIL had cash and cash-equivalents of Rs42,393 crore ($9.5 billion) as on 31st March this year, which was nearly double the level seen a year ago.
These were mainly in fixed deposits, certificate of deposits with banks, mutual funds and government securities/ bonds.
Addressing the company's shareholders at its 37th AGM here, Mr Ambani said that RIL's enterprise value stood at about $75 billion.
He said that RIL's revenue has grown by 28% on year-on-year basis over the past 33 years since its IPO, while profit and market capitalisation have grown by 33% on an average every year during this period.
Chairman Mukesh Ambani also added that Reliance Retail will soon launch cash-and-carry format stores for wholesale business, while its consumer-focused business will become market leader across all formats in the next two years.
Asserting that Reliance Retail has already become largest food retailer in the country, Mr Ambani said that all the specialty formats of the company would attain top positions in their respective segments in next two years.
Mr Ambani also said that Reliance Retail has already got the largest portfolio in terms of number of formats and 25 lakh customers were shopping at the company's various stores every week.
He said that further growth was expected in the retail business on the back of future investments and Reliance Retail was currently at an inflection point.
The company's stock was trading at Rs945.40 apiece in afternoon trade, down 0.68% from its previous close on the Bombay Stock Exchange.