FinMin to issue Cabinet note on listing of public sector insurance companies soon

Finance Ministry will soon issue a draft Cabinet note on listing of public sector general insurance companies in line with the announcement made in the Budget.

"Cabinet note for consultation on listing of four PSU general insurance companies will be issues in the next few weeks," sources said.

Final shape is being given to various issues including quantum of stake dilution, sources added.

Listing of PSU general insurance was announced in Budget 2016-17 by Finance Minister Arun Jaitley.

"... (proposed to) undertaking important banking sector reform and public listing of public sector general insurance and undertaking significant changes in FDI policy," he had said while unveiling Budget.

There are four public sector general insurance companies -- New India Assurance Company Ltd, National Insurance Company Ltd, Oriental Insurance Co Ltd, United India Insurance Co Ltd.

Besides, there are two specialised insurers -- ECGC and AIC -- one life insurance insurer, LIC.

Last year, the government allowed foreign insurance player to raise their stake in their joint venture to 49%.

Earlier, only up to 26% FDI was permitted.

There are 52 insurance companies operating in India, of which 24 are life insurance business and 28 in general insurance.