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Mandatory listing of insurance companies put on hold

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Insurance companies will not be asked to compulsorily list themselves on the stock market, as the Insurance Regulatory and Development Authority of India (Irdai) is having second thoughts about it after a nudge from the finance ministry.

“We had never insisted on it (listing).It is only a discussion paper and should be seen in that perspective,” Irdai Chairman T S Vijayan told Business Standard . He also said he had received comments on the paper from many companies asking for a reconsideration of the proposal.“We are willing to wait", he added.

In August,Irdai surprised the 55 life and non-life insurance companies in India, when it issued the discussion paper on the need for them to get listed. The regulator gave the companies a short time frame of less than a month to respond. “The hurry created an impression among firms that the final regulations would be in place soon”,said the CEO of an  insurance company.

Several companies have since approached the finance ministry,asking to discourage Irdai from making the plan operational.A highly placed government official said they had asked Irdai to go slow on theplan.In an unusual move, The official said the tighten its control over Irdai.

Currently,it has a joint secretary level officer from the finance ministry as apart-time member.

Irdai has been asked to place the controversial listing plan for a detailed discussion at the next meeting of the insurance advisory committee."

THE ECONOMICS TIMES
NEW DELHI, 17TH OCTOBER, 2016.

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