The insurance companies would be allowed to tap the capital market if they complete 7 years of operation against minimum of 10 years. With the ministry making the qualification period to lower down, several insurance players are excepted to tap the market in coming months. As a result this would allow insurance companies to raise funds which would meet the expansion needs and help save solvency ratio. As of now, only 26% FDI is allowed in the investment sector which means that local partners need to take larger share in equity infusion. The stakeholders in some companies may not be in a position to fund their growth.
There will be around 11 life and non-life private insurance companies which have been in operation for more than 7 years. As of now India has 22 life insurers, one in public sector and rest in private sector. There would be various companies who would be listing at the insurance business with regulations permitting conductive.
The regulation board is in the process of working and has put a place the framework allowing insurance companies to tap the market. Various insurance companies have made it clear that they will be looking forward at listing of insurance companies with markets being conductive.
The regulation board is in the process of working and has put a place the framework allowing insurance companies to tap the market. Various insurance companies have made it clear that they will be looking forward at listing of insurance companies with markets being conductive.
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