Edelweiss Fin approved to form general insurance co, shares up 4 pct

In a BSE filing on Tuesday, Edelweiss Financial Services announced approval from the insurance regulator the Insurance Regulatory and Development Authority of India (IRDAI) to set up general insurance company.

"The regulator has accepted the registration application form IRDA /R1, for setting up a general insurance company in India, filed by Edelweiss General Insurance Company, a wholly owned subsidiary," stated the company in its filing.

The shares gained four percent intraday after the company received approval from the insurance regulator to set up general insurance company.

This is the first step of regulatory clearances required for carrying on the business as general insurance company in India.

Edelweiss is already into life insurance business under Edelweiss Tokio Life Insurance, the joint venture between Edelweiss Financial Services and Japan's Tokio Marine Holdings Inc.

Earlier in January this year, Edelweiss Tokio Life Insurance had received IRDA approval to increase Tokio Marine's stake to 49 percent from 26 percent in the joint venture.

The scrip of Edelweiss Financial Services quoted Rs. 80.60, up Rs. 1.20, or 1.51 percent on the BSE.