Finance Ministry May Finalise PSU Insurers Listing Plan In Two Months

The Finance Ministry is likely to finalise contours of listing of public sector general insurance companies in a couple of months. Once finalised in two months, the ministry will seek the Cabinet nod for stake dilution, sources said.

Final shape is being given to various issues, including quantum of stake dilution, they added. Listing of PSU general insurance was announced in the Union Budget 2016-17 by Finance Minister Arun Jaitley. 

"(proposed to) undertake important banking sector reform and public listing of public sector general insurance and undertake significant changes in FDI policy," he had said while unveiling the Budget.

"Public shareholding in government-owned companies is a means of ensuring higher levels of transparency and accountability. To promote this objective, the general insurance companies owned by the government will be listed in the stock exchanges," he had said.

There are four public sector general insurance companies - New India Assurance Company Ltd, National Insurance Company Ltd, Oriental Insurance Co. Ltd and United India Insurance Co Ltd. Besides, there are two specialised insurers - ECGC and AIC, and one life insurance insurer, LIC.

Last year, the government allowed foreign insurance players to raise their stake in their joint ventures to 49%. Earlier, only up to 26% FDI was permitted.

There are 52 insurance companies operating in India, of which 24 are life insurance business and 28 in general insurance.