IRDA to finalise non-life IPO norms within 3 weeks

NEW DELHI: The insurance regulator will finalise the guidelines that will allow non-life insurance companies to raise funds through public issue of shares within three weeks, chief of Insurance Regulatory and Development Authority ( IRDA) said.

"We will come up with the norms shortly. There are certain aspects which we have to finalise by the end of September," IRDA chairman J Hari Narayan said on Thursday. He was speaking on the sidelines of a health insurance summit organised by industry body CII.

Listing norms for public issue of shares by life insurance firms is at an advanced stage as it has already been approved by IRDA and is now awaiting a clearance from market regulator SEBI, he said.

There are at present 23 life insurance firms and 24 non life insurers operating in the country with foreign direct investment limit set at 26%.

As per the Insurance Act, promoters having 26% stake can offload equity after 10 years of operation.

Talking about the ongoing dispute over cashless payment of medical bills between insurance firms and corporate hospitals, Mr Narayan said the issue would be resolved soon. "The problem is with certain group of hospitals. I am hopeful it will be resolved soon," he said.