IDRA seeks insurance companies’ share info from regulators

The Insurance Development and Regulatory Authority has directed all regulatory bodies concerned to inform it about the number of shares held by owners of insurance companies and the public.

IDRA issued a letter in this regard to the Central Depository of Bangladesh Limited (CDBL), Bangladesh Securities and Exchange Commission (BSEC) and other regulatory bodies concerned on Monday.

The decision was taken as media reports said some administrators of insurance companies are announcing the sale of their shares for capital gain, which goes against the Insurance Act, the letter said.

According to the insurance law, the minimum paid-up capital in life insurance business is Tk 30 crore and for general insurance businesses, the amount is Tk 40 crore. In both cases, 60 per cent is kept for company owners and the remaining 40 per cent for the public. As a result of steps taken by the authorities, the management cost has declined, it noted.