Many of us feel that the benefit amount we receive on maturity of life insu...
Among some other major changes in the IPO (Initial Public Offer) space, SEBI (Securities and Exchange Board of India) has cleared the norms for life insurance companies to go public and raise money.
While the exact details of the norms are yet to be clearly understood, the life insurance companies will be expected to clearly spell out the risks specific to insurance companies and explain terms used in the insurance industry. This is apart from the financial disclosures which the life insurance companies would have to make when they go public.
While these have been more or less on expected lines, the bigger challenge would be the changes to the Insurance Bill which would need the amendments to be approved in the parliament. As of now, only 26% FDI is allowed in the insurance sector. The insurance sector has been pressing for a relaxation and increasing the FDI limit to 49%. This has been the biggest roadblock so far, but as things are proceeding, the chances are that this norm would be amended to allow greater foreign participation.