Mumbai: Insurers that include SBI Life Insurance Co. Ltd, HDFC Standard Life Insurance Co. Ltd and ICICI Prudential Life Insurance Co. Ltd have begun examining their opportunities to list on stock exchanges on the back of the regulator initiating a process of formulating guidelines for initial public offerings (IPOs) that could take three months to finalize.
“These guidelines will be entirely on course with the guidelines as prescribed by Sebi (markets regulator Securities and Exchange Board of India), save that there may be certain specific requirements and concerns from the insurance point of view because of its different nature as a business,” J. Harinarayan, chairman of India’s Insurance Regulatory and Development Authority (Irda), said.
There are a few issues that need to be addressed by the regulator, said people familiar with the development.
The valuation methodology for insurance companies needs to be made transparent, they said on condition of anonymity. Also, the regulator needs to address the solvency margin requirement of this capital-intensive sector, the people said.
Irda is in talks with the Institute of Chartered Accountants of India, India’s top accounting body, for standard valuation norms.