Govt-owned Insurance Cos allowed listing at stock exchanges
Published: Jan 18, 2017
TIOLCORP News Service
NEW DELHI, JAN 18, 2017: THE Finance Minister in his Budget Speech for 2016-17 had announced that public shareholding in Government-owned companies is a means of ensuring higher levels of transparency and accountability; and to promote this objective, the general insurance companies owned by the Government will be listed on the stock exchanges. In pursuance to this, the Cabinet Committee on Economic Affairs, chaired by the Prime Minister has given its ‘in principle' approval for listing the following five Government owned General Insurance Companies in the stock exchanges. These are:
(i) The New India Assurance Company Ltd.
(ii) United India Insurance Company Ltd.,
(iii) Oriental Insurance Company Ltd.,
(iv) National Insurance Company Ltd. and
(v) General Insurance Corporation of India.
The shareholding of these Public Sector General Insurance Companies will be divested from 100 percent to 75 percent in one or more tranches over a period of time. During the process of disinvestment, existing rules and regulations of Securities and Exchange Board of India and Insurance Regulatory and Development Authority of India will be followed. It is expected that listing will bring better corporate governance, transparency and equity in the companies.
