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Ordinance paves way for PSU insurers to go public

State-owned general insurance companies can now get listed on the stock exchanges with the recent promulgation of the ordinance on the insurance bill.

Besides hiking FDI, the insurance bill has a clause which amends Section 10 of the General Insurance Business Nationalisation Act of 1972, allowing the government shareholding in General Insurance Corporation, New India Assurance, National Insurance, Oriental Insur ance and United India Insurance to fall up to 51%.

Industry experts say that listing will bring in benefits far beyond enabling fund raising for the government and insurance companies. The chase for top line growth among the four public sector companies by giving up on profitability is expected to come down. It would enable companies to reward employees with performance incentives through stock options

July 2015
Delhi -India