New Delhi: The Insurance Regulatory and Development Authority (IRDA) on Frdiay said it would come with initial public offer guidelines for the insurance sector within a fortnight to allow companies to raise funds from the capital market.

Several private sector insurance companies, including Reliance Life, have shown interest in tapping the capital market to augment its resource base: PTI

“IPO guidelines would be issued in the next 15 days,” Insurance Regulatory and Development Authority (IRDA) member R Kannan told PTI.

IRDA, which has been working on the guidelines along with market regulator Securities and Exchange Board of India (Sebi), is likely to come out with a draft for public comments before issuing the final guidelines.

Several private sector insurance companies, including Reliance Life, have shown interest in tapping the capital market to augment its resource base.

The Government had proposed to ease the norms to allow companies to list after five years of operation, instead of the current 10-year norm.

However, Kannan said, “no decision has been taken on reducing the number of years before permitting insurance companies to go public.”

As per the Insurance Act, the promoters having 26% stake can offload equity after 10 years of operation of the company. The legislation also empowers the govenment to reduce the mandatory period.

The IRDA had already notified the disclosure norms, necessary for providing details about the operations and balance sheets on quarterly and yearly basis.

The IPO guidelines will deal with minimum norms that a company must fulfill before hitting the capital market.

The three essential steps for hitting capital market are — norms for correct valuation; disclosure of operating results and profit and loss account; and filing of Draft Red Herring Prospectus (DRHP).

Besides the state-owned Life Insurance Corporation, 22 private companies are offering life insurance policies. The general insurance sector has 21 players which include four state-owned companies.

Anil Ambani Group’s life insurance venture Reliance Life expects to tap the capital market with its initial public offer in the first quarter of next fiscal.

Reliance Capital, the holding company of Reliance Life Insurance, is currently waiting for the final regulatory guidelines on the issue from insurance regulator IRDA and the subsequent clearance from the finance ministry, Reliance Capital CEO Sam Ghosh had said.

Reliance Life could be the first life insurance company in the country to come out with an IPO once the guidelines are framed.

Source: livemint.com

LAHORE: Federal Finance Minister Shaukat Tarin has dispelled impression of any kind of deadlock at the current NFC session, saying that a final decision to this regard will hopefully be made within few weeks.

Talking to newsmen at the end of first day of 6th NFC meeting here on Wednesday, he said the 19 year old issue was about to be solved, adding that there was a consensus among all the four provinces on the subject to division of resources on the basis of population and area.

He said differences among provinces over distribution of revenue have been ironed out as the federating units have demonstrated conciliation over the issues.

He said Punjab and Sindh would hopefully be reaching a consensus till tomorrow after which the question about division of resources would be solved soon.

Punjab Finance Minister Tanveer Kaira said not a single right of any province would be usurped.

Haji Adil, who was representing NWFP here, said his province was most affected from terrorism, and expressed his gratitude over what he called “Token money”, adding that their point would be taken into consideration in the NFC.

Balochistan Finance Minister Asim Kurd, speaking on this occasion, demanded to provide funds on the basis of area of their province.

Sources privy to the meeting, however, spoke of a deadlock between Punjab and Sindh. Sources claimed that a flexibility by Punjab would cost the province Rs.50 billion, while Sindh, if retreats from its stance, would have to loose a major share from the divisible pool.

Sources said final recommendations were unlikely to be prepared till Thursday, saying that there might be needs for more meetings.

KARACHI: All Pakistan Textile Mills Association (APTMA) denied any export deal regarding cotton yarn with Trade Development Authority of Pakistan (TDAP).

The association held a meeting at Aptma House Karachi with Anwar Tata chairing it.

Later talking to journalists, he said the TDAP monitoring on cotton and yarn exports is unwarranted, adding various other institutions including Custom and Aptma are registering the statistics regarding the exports of cotton and yarn.

Anwar said they are being pestered by leveling the kind of restrictions, adding the Value Added sector is troubled by only the price issue.

LAHORE: The sixth meeting of National Finance Commission (NFC) is underway here. Federal Finance Minister Shaukat Tarin is presiding the meeting.

The meeting will likely change the resources distribution formula among the provinces.

Talking to media before start of the meeting, Finance Minister Shaukat Tarin said federation will distribute the NFC award fairly and four standards for divisible pool have been established.

The representative of NWFP Haji Adeel said he will get the good news for the province. Finance Minister of Punjab Tanveer Ashraf Kaira said provinces having consensus on vertical distribution of resources and progress will be made during two-day session in Lahore.

Finance Minister Balochistan Asim Ali Kurd said other provinces acknowledging Balochistan’s sense of deprivation and lack of resources.

ISLAMABAD: The World Bank has set up a trust fund to rebuild areas hit by terrorism in Pakistan.

This was said by the World Bank’s Country Director for Pakistan Yusupha B. Crookes at a media briefing in the federal capital today (Tuesday).

The briefing was arranged by Minister of State for Finance Hina Rabbani Khar.

It was told in the briefing that World Bank and Asian Development Bank had initially estimated USD1 billion for the reconstruction of militancy-hit areas.

ISLAMABAD: The Competition Commission of Pakistan (CCP) has strongly opposed the Competition (Amendment) Bill, 2009 floated by a private member before the National Assembly to amend the Competition Ordinance 2007 for the imposition of prison sentences on executives of undertakings disobeying the Commission orders.

Competition (Amendment) Bill, 2009 has been presented before the National Assembly to amend the Competition Ordinance 2007.

In this regard, the Competition (Amendment) Bill, 2009 has proposed amendment of section 38 of the ordinance.

When the amendment Bill was moved before the Parliament, the Ministry of Finance sought viewpoint of the CCP on the proposed amendment.

The CCP has opposed the Competition (Amendment) Bill, 2009 with the plea that there is no need of further amendments in the Competition Ordinance 2007.

It is not the appropriate time to introduce such kinds of amendments, as penalties under the existing law are enough for smooth implementation of the new law.

The CCP had further informed the Ministry of Finance that the amendment should not be incorporated in the Competition Ordinance 2007 at this stage.

The prescribed penalties are enough under the law, it would be appropriate to access the enforcement of the law and after the adequate experience gained by the Commission in its implementing, say two to three year, before any amendment can be rationally proposed.

The law has been carefully drafted incorporating best international practices.

The amendments proposed by the private member of the National Assembly would appear to be highly unsuitable under current circumstance of country.

At this stage, it is crucial to pass the Competition Ordinance 2007 by the National Assembly to check cartelization, deceptive marketing practices and collusive behaviour by certain undertakings.

ISLAMABAD: Minister for Finance Shaukat Tarinsaid on Thursday that negotiations with the International Monetary Fund for third tranche under Standby Arrangements have been completed and the IMF board would approve US $ 1.2 billion for release to Pakistan by the middle of next month.

The Minister said that the IMF reviewed the economic performance of Pakistan in the first quarter of the current financial year and expressed its satisfaction over Pakistan’’s economic performance during the period.

He termed the talks with IMF as productive and positive, adding that Pakistan was on board in terms of its economic targets including the set target of the budget deficit. Shaukat Tarin said that economic stabilization programme of the country is moving in the right direction to achieve its desired results.

However, he said risks are there in the world economies and Pakistan was no exception. Replying to a question, he said that the government was to increase the electricity tariff by 6 percent but it was increased by 4 percent. There would be no further increase in the electricity charges but only adjustments would be made in the rates, he added.

He said the Fund has some reservations which are being removed and expressed the hope that the third tranche of US $ 1.2billion would be released by mid December.

DUBAI: The IMF has expressed dissatisfaction over energy sector reforms has and asked Pakistan government to increase electricity tariff by 30 paisas per unit, Geo News reported Wednesday.

Sources told Geo News that IMF argued government of Pakistan has failed to increase the required electricity tariff by 6 percent from 1st October this year, however, the actual increase of 4.4 percent have occurred due to subsidy provided to small subscribers using 50 unit tariff and tube wells.

IMF said the deficit created by the subsidy be overcome by charging the regular subscribers.

IMF has stated that Pakistan government had raised electricity tariff by Rs.1.20 per unit, now the tariff should get a further 30 paisa increase by the evening of 12th November.

The draft of value-added services should also be prepared by December and tax amendments should be made on timely basis, IMF stressed.

ISLAMABAD: The National Assembly Standing Committee on Finance and Revenue on Wednesday thoroughly deliberated and examined the Competition Bill, 2007 (Competition Ordinance, 2007) and unanimously passed the bill.

The committee met here with Fauzia Wahab in the chair to re-consider and re-examine the Competition Ordinance, 2007.

Chairman Competition Commission of Pakistan (CCP) briefed the committee and said that enactment of the Competition Bill, 2007 and establishment of a dedicated competition agency is a need of time.

The promulgation of the bill itself is a stepping stone towards achieving improvement in the competition law and policy of the country.

The bill primarily based on the Treaty of Rome has been tailored to take into account the socio economic realities.

However, by doing so, it is still on all counts in accordance with international best practices and conforms to the recommendations of the Organization for Economic Co-operation and Development (OECD) and other international regional bodies, he added.

He further said that it prohibits abuse of market dominance, anti-competitive agreements, deceptive market practices and mergers of undertakings that substantially reduce competition.

It avoids procedures that may pose unnecessary transaction or compliance costs on firms, obstacles to beneficial mergers and acquisitions and unnecessary restrictions on innovative horizontal and vertical arrangements among firms.

The meeting was attended by MNAs including Nafisa Shah, Khalida Mansoor,Riaz Fatyana, Aftab Shaban Mirani and Arif Aziz Shaikh besides other senior officials from Ministry of Finance and Competition Commission of Pakistan.

KARACHI: Sindh Law Minister Mohammed Ayaz Soomro Tuesday said 3576 cases were withdrawn under National Reconciliation Ordinance (NRO) in Sindh, among them, are included corruption and criminal cases.

Talking to media after the meeting of law officer at Sindh Assembly, he said the NRO beneficiaries include politicians, bureaucrats, industrialists and capitalists.

Presiding a meeting of the officials of Law Department, he said that he is satisfied with the performance of government lawyers but there is need to improve it further to achieve 100 percent results.

The Minister said that by recruiting law officers, the present government has overcome the shortage of government lawyers in all the courts and there is not a single court left without a government prosecutor.

He told the meeting that recommendation will be made to the Chief Minister for providing vehicles and other facilities for law officers to help improve their working.

On the occasion District Public Prosecutor informed the Minister that the FIRs sent to them by police are quite sub-standard and even non-readable.

He said the police be made bound to send clear and readable copy of the FIR.

The Minister asked the CCPO present in the meeting to take immediate steps in this regard.

On the occasion Ayaz Soomro told the meeting that terrorists cannot be spared, no matter to which group of jehadi organisation they may belong to.

Suicide bombers are killing innocent people just for few rupees and defaming Islam and the country, he said.

Among others, the meeting was attended by CCPO Karachi, Secretary Law Ghulam Nabi Shah, Prosecutor General Shahadat Awan, Solicitor Sindh, Additional Secretary Law and Law Officers of Karachi Division.