Thursday, September 15, 2011

EQUITY DILUTION NORMS FOR THE INSURANCE FIRMS RELAXED

The Finance Ministry has issued a circular diluting the rules that govern stake sale by promoters of Indian insurance companies.

OLD RULE

Any Indian promoters holding more than 26% stake in the insurance firms could divest stake only after completing 10-years of its operations.

NEW RULE

The Indian company will be able to sell stake any time but will have to retain at least 26% holding.

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