New Delhi (30.07.2021): The Union Cabinet has reportedly approved amendments to the General Insurance Business (Nationalisation) Act (GIBNA) to open up public sector general insurance companies (GICs) to institutional and retail investments. A Bill in this regard may be tabled in Parliament during the current monsoon session itself. Readers may recall that the government has already initiated the process to divest its shares in the LIC. The company's IPO is billed to be the biggest ever in the Indian equity market. The opening up of the general insurance companies was indicated by Union Finance Minister Nirmala Sitharaman in her FY22Budget. In her speech then, she spoke about the divestment of government holdings in two public sector banks and one general insurance company. The Government has budgeted Rs 1.75 lakh crore from the sale of its holdings in public sector companies and financial institutions during the current fiscal. Before the government got going on big-ticket divestment, the NITI Aayog was entrusted with the task of recommending names for the privatization of two public sector banks and one general insurance company. NITI is believed to have suggested the name of United India Insurance to the Core Group of Secretaries on Disinvestment, headed by the Cabinet Secretary. The Government is also said to be processing the proposed amendments to the Banking Regulation Act, 1949, before moving to divest its shares in two public sector banks. It is pointed out that amendments would also have to be made in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, for privatization.
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Divestment of GICs being processed
By IndianMandarins - 2021-07-30 13:11:00
New Delhi (30.07.2021): The Union Cabinet has reportedly approved amendments to the General Insurance Business (Nationalisation) Act (GIBNA) to open up public sector general insurance companies (GICs) to institutional and retail investments.
A Bill in this regard may be tabled in Parliament during the current monsoon session itself.
Readers may recall that the government has already initiated the process to divest its shares in the LIC. The company's IPO is billed to be the biggest ever in the Indian equity market.
The opening up of the general insurance companies was indicated by Union Finance Minister Nirmala Sitharaman in her FY22Budget. In her speech then, she spoke about the divestment of government holdings in two public sector banks and one general insurance company.
The Government has budgeted Rs 1.75 lakh crore from the sale of its holdings in public sector companies and financial institutions during the current fiscal.
Before the government got going on big-ticket divestment, the NITI Aayog was entrusted with the task of recommending names for the privatization of two public sector banks and one general insurance company. NITI is believed to have suggested the name of United India Insurance to the Core Group of Secretaries on Disinvestment, headed by the Cabinet Secretary.
The Government is also said to be processing the proposed amendments to the Banking Regulation Act, 1949, before moving to divest its shares in two public sector banks. It is pointed out that amendments would also have to be made in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, for privatization.
