IRDAI squeezes norms for insurance IPOs

Insurance Regulatory and Development Authority of India (IRDAI) will make certain changes to its guidelines for facilitating insurance companies to go public, according to a top official.

Insurers at present has to take the Authority’s permission for selling more than one per cent of equity. This stipulation has to be changed when they plan to make an IPO, according to T. S. Vijayan, Chairman, IRDAI.

The IRDAI, he said, was also in the process of announcing a timeframe after which insurers could make an IPO. “We are working with the companies… not decided on the timing (minimum years of operation before going public),” he said.

Listing of the shares would contribute towards better corporate governance and transparency, he said.

IRDAI’s move comes in the backdrop of at least two life insurers exploring the prospects of coming out with an IPO.