Life insurance companies get rules for public offers

By Anshuman Sakle, Khaitan & Co
0
1289
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

The Insurance Regulatory and Development Authority (IRDA) in November notified the IRDA (Issuance of Capital by Life Insurance Companies) Regulations, 2011, which pave the way for life insurance companies in India to raise capital through public issues. The regulations formalize the eligibility criteria for life insurance companies to raise capital and prescribe additional disclosure requirements for the offer documents of life insurance companies.

This is the first time that an industry regulator has laid down requirements additional to those of the capital markets regulator, the Securities and Exchange Board of India (SEBI), in this regard. A life insurance company proposing to approach the capital markets must obtain prior permission from the IRDA before approaching SEBI for the necessary clearances. Only companies which have completed 10 years of business in India are eligible to apply.

Assessment process

The IRDA will assess the overall financial position of the company, its regulatory record and record of compliances, the proposal for the issue or offer of capital, the post-issue capital structure of the company, and the company’s objects for raising capital. The regulator will also evaluate the company’s maintenance of the prescribed regulatory solvency margins at the end of the six quarters preceding the application, its record of policyholder protection and its adherence to the IRDA’s corporate governance guidelines.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

Anshuman Sakle is an associate at Khaitan & Co. Khaitan & Co is a full-service law firm with offices in Mumbai, Delhi, Bangalore and Kolkata. Views expressed in the article are those of the author and do not necessarily reflect the views of the firm.

Khaitan_&_Co_logo_2-grey

One Indiabulls Centre, Tower 1,

13/F, 841 Senapati Bapat Marg,

Elphinstone Road, Mumbai – 400 013, India

Tel: +91 22 6636 5000

Fax: +91 22 6636 5050

Email: mumbai@khaitanco.com

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link