Insurance Regulatory and Development Authority (IRDA) has came out with guidelines allowing life insurance companies, which have been in business for over 10 years, to raise funds from the public through IPOs.
1- No life insurer can approach market regulator Securities and Exchange Board of India (Sebi) for IPO approval without going to Irda first, the guidelines say.
2- Irda’s approval for an IPO will only be valid for a year, within which the company can approach Sebi. This is in line with listing norms laid down by Sebi for companies wanting to raise capital through public markets.
3- Companies going public have to mandatorily disclose a record of policyholder protection and the pendency of the policyholder complaints for the last five years in the draft red herring prospectus to be filed with Sebi.