The Insurance Regulatory and Development Authority of India (Irdai) might mandate some life insurance companies to go for a public issue, the regulator said in exposure draft on 'Issuance of Capital by Indian Insurance Companies transacting Life Insurance Business'.
"The Authority may direct an Indian insurance company transacting the life insurance business to go for public issue if the circumstance so warrant. Such company shall within a period of one year from the date of such direction comply with direction issued," it said in the draft.
While it was earlier anticipated life insurers would bring out initial public offerings (IPOs) soon after they complete 10 years in the sector, none of them did so. This was due to stress in business, no higher foreign direct investment (which has now been raised to 49 per cent) and poor market conditions, among others.
