Govt's five Insurance Firms to be on Stock Exchanges

INDORE, India - Jan. 19, 2017 - PRLog -- The Union cabinet today agreed the listing of 5 state-run general insurance companies, namely New India Insurance, General Insurance Corporation, National Insurance Corporation, Oriental Insurance Corporation and United Insurance Company to be on the stock exchanges.

Finance minister Arun Jaitley said, the listing will be done through fresh share issues. The government holding in these companies will slowly come down to 75% from 100%. He added that the possibility of the listing of state-run general insurers was announced in last year's budget . Listing of these companies, will lead to improved corporate governance and risk management practices.

'Public shareholdings/ IPOs in government-owned companies are means of ensuring higher levels of transparency and accountability. To promote this objective, the general insurance companies owned by the government will be listed on the Exchanges', said the finance Minister.

New India and General Insurance Corporation have already taken nods from the board for floating their initial public offers.

Listing on the stock exchanges will automatically necessitate compliance and counting requirements of the SEBI ensuring transparency and equity in the functioning of the companies.

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