File image of Union Minister for Finance and Corporate Affairs, Arun Jaitley and MoS for Finance, Santosh Kumar Gangwar. (Image: PTI)
New Delhi: The government on Wednesday approved proposals for the listing of five PSU general insurance companies as was announced in the Budget 2016-17.
The Cabinet approved the listing of public sector general insurance companies through a combination of fresh issuance of shares or Offer for Sale, Finance Minister Arun Jaitley said.
The government holding in these companies will gradually come down to 75 per cent from 100 per cent, he said.
The five firms that will be listed include four public sector general insurance companies — New India Assurance Company Ltd, National Insurance Company Ltd, Oriental Insurance Co Ltd, United India Insurance Co Ltd and one re-insurance firm GIC.
Listing of PSU general insurance firms was announced in the Budget by the Finance Minister.
“…(proposed to) undertake important banking sector reform and public listing of public sector general insurance and undertake significant changes in FDI policy,” he had said while unveiling the Budget.
“Public shareholding in government-owned companies is a 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 stock exchanges,” he had said.
The government has allowed foreign insurance players to raise their stake in their joint venture to 49 per cent.
Earlier, only up to 26 per cent FDI was permitted.
There are 52 insurance companies operating in India, of which 24 are in life insurance business and 28 in general insurance.