BSE-Ebix JV to seek nod for insurance distribution

‘We have tied up with Ebix, a US based insurance exchange and we have taken permission from Securities Exchange Board of India for setting up a subsidiary for the insurance distribution. 

In fact, we have formed a joint venture with Ebix and the JV company is in the process of preparing application for seeking approval from Insurance Regulatory Development Authority of India (IRDAI),” BSE’s MD and CEO Ashish Kumar Chauhan said. 

The JV company will distribute life, non-life and health insurance products of various companies. 

While BSE and Ebix will hold 40 per cent each in the JV company, the rest 20 per cent will be held by individuals and the company will eventually be called BSE-Ebix Insurance Broking, he said, on the sidelines of the Fintech Forum organised by the Merchants’ Chamber of Commerce and Industry here.  

The JV company will leverage the physical infrastructure of BSE and the technology platform of Ebix, he said. Chauhan also said the stock exchanges were largely focusing more on “speculation” rather than investment products over the last 20 years. 

After the success of distribution of investment products like mutual fund schemes, it realised that there was a huge demand for investment products, he said, adding the exchange started distribution of MFs in 2010 and it is now looking at the distribution of other financial products.