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

Where the true sadhana of Vedanta is to be found

Somewhere Among the Stars: Reflections of a Mystic By Adi Varuni Kali/BluOne Ink, 282 pages, Rs 395 Decades ago, when an unknown N

India celebrates National Voters’ Day

The 13th National Voters’ Day was celebrated across the country Wednesday with president Droupadi Murmu gracing the national event held here. Kiren Rijiju, union minister for law & justice, was the guest of honour. The chief election commissioner, Rajiv Kumar, election commissioners Anup Chandra

INS Vagir to give fillip to Navy: Admiral Hari Kumar

The Indian Navy commissioned its fifth stealth Scorpene class Submarine INS Vagir on Monday at the Naval Dockyard, Mumbai in the presence of Admiral R Hari Kumar, Chief of the Naval Staff. Vagir was launched on November 12, 2020, under Project 75 (P75) and post completion of sea trials it w

Uddhav joins hands with Prakash Ambedkar ahead of BMC polls

Ahead of the Mumbai civic polls, former Maharashtra chief minister Uddhav Thackeray on Monday announced an alliance with Prakash Ambedkar`s Vanchit Bahujan Aghadi (VBA). Addressing a joint press conference, Thackeray said their grandfathers, Keshav Thackeray and Dr. B.R. Ambedkar, were conte

How women leaders enable collective action at local level

Ela R. Bhatt, the founder of SEWA, once said, “There is ample proof to demonstrate that women can and do build strong and vital organizations around issues that relate to them, and find viable solutions out of their own experiences.” Women Leadership Schools (WLSs) promoted by Se

Endorsement guidelines issued for celebs and social media influencers

The department of consumer affairs under the ministry of consumer affairs, food and public distribution released a guide, ‘Endorsements Know-hows!’, for celebrities, influencers and virtual influencers on social media platforms here on Friday. The guide aims to ensure that individuals do not mi

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter