Initial Public Offerings By Indian Insurance Companies

Introduction

The insurance sector in India is highly regulated. The Insurance Act, 1938, as amended (the "Insurance Act") and other rules, regulations, notifications and guidelines notified by the Insurance Regulatory and Development Authority of India ("IRDAI") regulate, promote and ensure orderly growth of the insurance industry in India.

The Government of India recently liberalised its policy on foreign investment in the insurance sector, permitting foreign direct investment up to 49% of the paid-up capital of an Indian insurance company under the automatic route. With a view to further capital raising from the public markets by insurance companies, the IRDAI notified the IRDAI (Issuance of Capital by Indian Insurance Companies Transacting Life Insurance Business) Regulation, 2015 ("IRDAI Issuance of Capital by Life Insurance Companies Regulations") and IRDAI (Issuance of Capital by Indian Insurance Companies Transacting other than Life Insurance Business)