There are 22 private companies are offering life insurance policies in India at the moment. As per the current SEBI law, companies can get listed on the bourses after they finish 10 years of operations. Under this perspective the insurance sector regulator IRDA is likely to allow public float by only those companies, which are in the business for at least 10 years and have a track record of three successive years of profit.
IRDA informed the market that the guidelines to allow life insurance companies to raise funds from the capital market will be out by the end of April 2011. These guide lines will be in place before the private insurers completes their 10 years of operation in India.
Several private sector insurers, including Reliance Life and HDFC Standard Life, have shown interest in tapping the capital market to augment their resource base. Reliance Life is about to complete 10 years of operations in India, whereas HDFC Standard Life has already completed a decade of business here.Google+