Reliance Life seeks govt nod for IPO

Reliance Life has requested the Finance Ministry to allow it to launch IPO before completion of the 10-year operation clause, official sources said.

The 6AA provision of the Insurance Act, specifies that Indian promoters having more than 26 per cent shareholding shall after 10 years reduce it in some appropriate manner or within such period the central government may decide. Citing the above provision, the insurance sector regulator IRDA has already shot down the proposal of the Reliance Life to hit the capital market. “Reliance Life had come to the regulator to seek the permission and we have found that we are not empowered to accord any such thing before 10 years,” IRDA Chairman J Hari Narayan had said.