Passage of Insurance Bill to greatly benefit companies with serious financial constraint: BP Singh

In a chat with ET Now, BP Singh, Executive Director & CIO-Equities at Pramerica Mutual Fund, shares his thoughts on insurance stocks. Excerpts:

ET Now: What is your view in the smaller insurance plays - pure play insurance or companies which have got insurance as a large part? If indeed the bill gets a leg up this Winter session, would these companies be viewed favourably?

BP Singh: Yes. These companies are now starved of capital and partners were not allowed to put money. Hence, a lot of financial restructuring was going on. If the bill is passed, it will have a positive impact on the company, particularly the ones where capital is a constraint.

You can see that there are five-six such companies that are having a serious financial constraint and this particular bill will play a very positive impact on them.