The Financial Express

Non-listed ins companies yet to go public

IDRA calls meeting today

| Updated: December 18, 2019 11:31:02

Non-listed ins companies yet to go public

Even though the deadline already expired, no visible progress has been made to bring non-listed insurance companies into the capital market, officials said.

As a result, Insurance Development and Regulatory Authority (IDRA) has called an emergency meeting of stakeholders, chairmen and chief executive officers of these insurance companies today (Tuesday).

The issue of apathy among 28 insurance firms to get listed on the stock market will come up at the meeting for discussion, according to them.

Representatives from Financial Institutions Division (FID) will also attend the meeting.

On September 15, finance minister Mustafa Kamal gave the directives at a view-exchange meeting with chairmen and top executives of insurance companies.

After the meeting the minister said, "We have asked non-listed insurance companies to be listed on the capital market within next three months. If they fail to get enlisted on two stock exchanges-Dhaka and Chattogram-stern action would be taken against them."

In the meeting, insurance companies' authorities mentioned that they have been facing difficulties in running their business, a meeting source said.

Currently, there are 78 insurance companies, life and non-life. Of them, 47 are listed on the capital market, according to the IDRA webpage.

Though the finance minister at the meeting in September asked non-listed insurance companies to get enlisted on the capital market and offload shares by three months, no progress has been made in this regard, according to the source.

"Despite repeated attempts made by government high-ups to bring such companies into the capital market, no development has taken place as the authorities of non-listed insurance companies are dragging their feet over listing on the stock market," a senior official of Financial Institutions Division (FID) said.

Despite frequent attempts over phone, IDRA chairman Md. Shafiqur Rahman Patwari and its member Gokul Chand Das could not be reached for their comments in this regard.

[email protected]

Share if you like