Insurance Regulatory and Development Authority (IRDA) today said it is likely to finalise mergers and acquisitions (M&A) guidelines for the sector in the next few months.
"It (guidelines) would be finalised shortly. It is most likely to be finalised in the next couple of months," IRDA Chairman J Hari Narayan told reporters on the sidelines of a function organised by Assocham here.
At present, there are no specific guidelines for M&A in insurance sector in the country. The new norms would encourage consolidation in the insurance sector.
There are 22 life insurance firms and 21 non-life insurance companies operating in the country currently.
Asked about Reliance Life's proposal to float an IPO, Hari Narayan said, "They had come to the regulator to seek the permission and we have found that we are not empowered to accord any such thing before 10 years."
As per the provisions of the Insurance Act, if a company is not in existence for 10 years and wishes to launch an IPO, then the only authority which has powers to do so is the government and subsequently the company has approached the government in the matter, he said.
