The Insurance Regulatory & Development Authority (IRDA) would, in a week’s time, finalise and submit its recommendations to the Securities and Exchange Board of India (SEBI) on valuing insurance companies, disclosures and other requirements for insurers, who want to raise money through initial public offerings (IPOs).
Based on these recommendations, SEBI would release the IPO norms for insurance firms.
Speaking to Hindustan Times, a senior official of IRDA said, “The recommendations are on the kind of disclosures insurance companies should make for an IPO, the kind of valuation precautions that should be adopted by the actuary so that prospective investors are not misguided, the checks and balances that are required in the disclosures itself. We would be finalising the recommendations by next week.”
“The recommendations will also address the question as to how profit will be generated from the current portfolio as on the valuation day.”
Private life insurance companies such as Reliance Life, HDFC Standard Life, SBI Life and ICICI Prudential want to go public