Govt approves listing of general insurance companies

The move is aimed at accelerating government’s plans to raise money through disinvestment of equity stakes in the PSUs

GN Bureau | January 19, 2017


#Arun Jaitley   #insurance companies   #listing   #PSU  

The cabinet committee on economic affairs (CCEA) chaired by prime minister Narendra Modi has approved listing of five state-run general insurance companies. The move is aimed at further accelerating government’s plans to raise money through disinvestment of equity stakes in the public sector undertakings (PSUs), following its other similar recent initiatives, a PIB release stated. 

 
The government holds entire 100 percent stake in all the five state-run general insurance companies, namely — New India Assurance Company, National Insurance Company, Oriental Insurance Company, United India Insurance Company and a re-insurance firm General Insurance Corp. 
 
Addressing media, finance minister Arun Jaitley said that the government holding in these five companies will gradually fall to 75 percent post listing in one or more tranches over a period of time. This is in line with India’s listing requirements as mandated by the regulator. During the process of disinvestment, existing rules and regulations of securities and exchange board of India (SEBI) and insurance regulatory and development authority of India (IRDAI) will be followed, the release said.
 
The listing may include both, issuing fresh shares with the proceeds going to the companies itself, and offer for sale of existing shares with the proceeds going to the seller – the government. However, it was not immediately clear if the government is targeting listing of all five companies in the current financial year itself. 
 
Jaitley in his 2016-17 budget speech had said that the government proposed to undertake important banking sector reform and public listing of public sector general insurance entities. India has already raised the foreign direct investment limit in insurance sector to 49 percent from 26 percent.
 

Comments

 

Other News

Kodnani’s acquittal raises doubts about criminal justice system

 Maya Kodnani, a BJP leader who was the MLA from Naroda when this locality on the outskirts of Ahmedabad witnessed one of the most gruesome episodes during the Gujarat riots of 2002, was acquitted by the Gujarat High Court on Friday. Her acquittal in the Naroda Patiya massacre case is only a sequel to

BMC took nearly 48 days in resolving one complaint

The number of civic complaints with BMC has increased from 61,910 in 2015 to 92,329 in 2017, which is 49% in two years. A report titled ‘Civic Issues Registered by Citizens and Deliberations done by Municipal Councillors in Mumbai’ released by Praja Foundation has found some interesting facts a

Who is Atishi Marlena?

Atishi Marlena is among the nine AAP functionaries who were dismissed by the union home ministry asserting that their posts were created without the approval of the centre. Marlena, served as education advisor of the Aam Aadmi Party (AAP)-led government in Delhi. While she was intrumental in improving the

Leadership? Learn it from Jaising, Ambani, Doshi

The Fortune magazine has named three Indians – lawyer Indira Jaising, industrialist Mukesh Ambani and architect Balkrishna V Doshi – among the world’s greatest fifty leaders.

Energy as the new value system for redesigning daily life

Remember Kardashev scale? For the uninitiated, it’s a method of measuring a civilization’s level of technological advancement, based on the amount of energy it is able to use for communication. We will get to its unconventional relevance to the big urban questions at the end, but just keep it a

48 MLAs, MPs have declared cases of crime against women

Out of 1580 MPs and MLAs with criminal cases, 48 (three MPs and 45 MLAs) have declared cases related to crime against women. The Association for Democratic Reforms (ADR) and

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter