Irda not keen on FDI hike, prefers public issue route

Irda not keen on FDI hike, prefers public issue route
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First Published: Sat, Jun 27 2009. 01 15 AM IST
Updated: Sat, Jun 27 2009. 01 48 PM IST
Mumbai: The legislation on the insurance sector may be pushed back yet again.
The Bill is currently being examined by a standing committee, which is yet to make its recommendations before it is tabled in Parliament. The committee has raised questions about the proposed raising of foreign direct investment in the sector, people familiar with the development said on condition of anonymity.
The people also said Insurance Regulatory Development Authority (Irda) is not in favour of stake sale among promoters in the event of FDI going up to 49%. It instead wants insurance companies to go public, they said.
“Another suggestion being discussed is that both parties (local and overseas) keep the stake to 26% each and offer balance 48% to the market,” said Ashvin Parekh of consultancy firm Ernst and Young.
cnbctv18@livemint.com
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First Published: Sat, Jun 27 2009. 01 15 AM IST