The top management is chalking out plans to take up the business in the days to come,'' she said, adding that it includes identifying foreign partners.She said the group's foray into the insurance sector was a natural choice. The move is synergistic as the group has already set up companies dealing with fund-based and non-fund-based activities, she said.

"Finance constitutes a major hub of the group. Insurance is its key component," she said. Ashok Leyland Finance Company is a leasing firm while Ashok Leyland Investment Company is a non-fund-based firm offering project-advisory services. Hinduja Finance is a non-banking finance arm of the group.

Meanwhile the other private-sector companies, which had already announced their decision to enter the sector, are keenly awaiting further developments.TheTatas, which has a tie up with the US major American International Group, is trying to study the implications of the finance minister's decision. Tata Risk Management Services, a division of Tata Sons Ltd, undertakes three functions, safety, environment, and insurance - which is more of an advisory nature.

"We have an existing insurance division. With or without a tie-up we can transact the business in life and non-life segments,''said a top official of the company.

Similarly Kotak Mahindra which has a mou with US based Chubb company is already prepared with its future plans supported by the study of the domestic company.

It was too early to draw any conclusion that foreign insurance companies could enter the country as joint venture partners with indian companies following the decision to throw open the financial services sector to private participation, said top official of the ministry of finance.

The details of the decision are not yet clear. But when the Government will frame the legislation onthe Insurance Regulatory Authority (IRA) we may be able to clarify the position, he said. The insurance industry experts felt that there could be scope for foreign companies to enter as indian companies could, under normal laws, have minority shareholding by foreign partners.

If foreign companies can enter into joint ventures with indian companies in other sectors particularly the infrastructure sector, why not in the financial services sector also, a representative of a leading multinational insurance company asked.