India’s Insurance Regulatory and Development Authority (IRDA) is tightening the rules for general insurers wanting to tap financial markets.

Under a draft of new regulations, general insurers must have 10 years’ experience and receive approval from the IRDA before raising money on the share market.

“No general insurance company shall approach the [Securities and Exchange Board of India] for a public issue of shares and for any subsequent issue... without the specific previous written approval of the authority,” the proposal on initial public offerings says.

The IRDA says it will take into account an insurer’s financial position, capital structure and regulatory record before allowing an equity-raising.

It will also restrict the extent to which promoters of such issues can sell down their holdings and the size of stakes bought by foreign investors.