M&A norms for insurers soon; in talks with Reliance Gen: Irda

Insurance regulator Irda today said it will soon come out with merger and acquisition norms and is in discussion with Reliance General for the proposed acquisition of a South-based insurance company.

"M&A norms would be announced soon. A committee is studying the issue," Irda Chairman J Hari Narayan said at a CII insurance conference here.

To a question on the status of Reliance General Insurance acquiring a south-based insurance company, he said, "We have certain issues which we are trying to resolve through discussions."
    
Earlier, there were reports that the Anil Dhirubhai Ambani Group-promoted Reliance General Insurance is looking at buying 74 per cent stake in its rival Royal Sundaram.
   
If successful, it would be the first time that a general insurance firm acquires a rival and therefore the relevant guidelines need to be sought from the sectoral regulator Insurance Regulatory and Development Authority (Irda).
    
Hari Narayan further said that IPO norms for the life insurance companies are expected very shortly from the capital market regulator Securities and Exchange Board of India (Sebi).