Skip to main content

Mandatory listing of insurance companies put on hold

By
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.

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more