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The IPO guidelines could take a month’s time in coming and market regulator SEBI will take the final call, said IRDA
The initial public offering (IPO) guidelines for the insurance sector are likely next month, the Insurance Regulatory and Development Authority (IRDA) said on Monday.
"The IPO guidelines could take a month’s time (in coming) and the Securities and Exchange Board of India (SEBI) will take the final call," IRDA chairman J Harinarayan said.
He further said that the valuation norms for companies has been finalised and sent to the Institute of Actuaries.
"Once their (Institute of Actuaries) committee clears it, it will be sent to SEBI and then the market regulator would take a call," he added.
IRDA, which has been working on the guidelines along with market regulator SEBI, is likely to come out with a draft for public comments before issuing the final norms.
Several private sector insurance companies, including Reliance Life, have shown interest in tapping the capital market to augment their resource bases.
The government had proposed to ease the norms to allow companies to list after five years of operation, instead the current 10-year practice.
As per the Insurance Act, promoters having 26% stake can offload equity after 10 years of operation of the company.
The legislation also empowers the government to reduce the mandatory period.