Financial Daily from THE HINDU group of publications
Wednesday, Mar 10, 2004
Financial Daily from THE HINDU group of publications Wednesday, Mar 10, 2004 |
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Money & Banking
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Investments `Insurers' bids in IPOs must be within prudential norms' Our Bureau
New Delhi , March 9 THE Chairman, Insurance Regulatory & Development Authority (IRDA), Mr C.S. Rao, has said that state-owned insurance companies should be careful that they do not fall foul of the prudential guidelines laid down by the regulator while investing in the ongoing disinvestment of public sector companies. "As long as they abide by it (the investment regulations), we have no objection," Mr Rao said on the sidelines of an insurance seminar here on Tuesday. Insurance companies led by the Life Insurance Corporation (LIC) have put in large amounts in some of the public offers. LIC is said to have put in Rs 1,000 crore bid for the ONGC public offer alone. Mr Rao also said that the IRDA would take strong action against agents who offer rebates on the first premium to garner business. "Rebating is illegal. We will take action against agents who are offering rebates in cash or kind if we come across such incidents." He said that the regulator could go to the extent of cancelling the licence of agents adopting such practices or ask the insurers to discontinue such agency. The IRDA Chairman also said that the regulator is planning to come up with a corporate governance code in line with that of market regulator SEBI. "Corporate governance is an issue that has to be looked into," Mr Rao said.
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