Insurance companies may have to wait for much longer before they can raise capital from equity markets. Other than awaiting government decision to relax 10 years time frame, sources say the insurance regulator is keen to see insurance companies disclosures for an entire financial year before allowing them to go public.

What we understand from sources is that insurance companies may have to wait till December 2010 to go public. The reason for this is that firstly the government regulation at this point in time says that the insurance companies cannot list before 10 years of operation.

We understand that government is looking at relaxing these norms and allowing it for about five years and seven years of operation that the companies can go public.

But more importantly, IRDA is working on a whole set of disclosure regulations with regard to insurance companies. It is setting its disclosure regulations for both listed and unlisted companies.

It is also in talks with SEBI with regard to the disclosures for the red herring prospectus and also it is working with ICAI with regard to standardising valuation norms.

All these three important aspects will be covered, and the decisions on the disclosures with regard to these for the red herring as well as the overall disclosures will be taken by January early next year.

What we understand from sources is that the regulator believes that perhaps insurance companies will have to make all these disclosures for at least a year for them to be comfortable to allow them to really go public.

So the sense that we are picking up from the regulator is that they will want to wait and watch and see all the disclosures being made by the insurance companies before they allow them to list at least for one financial year.

So as of now, Reliance Life Insurance was planning to list around January or it was planning to go public around January that is what sources say. But from what it looks like, perhaps will have to wait for a little longer time.