``We will keep the windows open continuously,'' a top official in the Insurance Regulatory and Development Authority (IRDA) said. The decision is a shift from the earlier stand that the windows be kept open only for a period of three months. Many companies planning insurance entry in India are still in the process of finalising partners and the decision to keep the windows for new licence applications open for ever will allow them not to rush through with their plans.

``Certainly, this will allow companies to take their own time to file for new licences. It is a good development,'' Anthony Jacob, chief executive officer of Royal & Sunalliance, which has tied-up with Chennai-based Sundaram Finance for non-life insurance, said.

The IRDA official said that the rules for insurance players are almost ready and the windows for filing for new licences will be open by July 15.The detailed guidelines that are being given finishing touches by the authority would cover licencing norms, agency regulation, accounting regulation and investment regulation.

Earlier, special secretary (insurance) in the ministry of finance BK Chaturvedi had stated that the IRDA will give a maximum of three months time for new entrants to apply for licences. He had stated that the windows would be opened later after reviewing the progress made by the companies in developing the insurance sector. IRDA officials said that the regulator will take a decision on the licence issuance in 120 days after the filing of applications.

It is expected that the first insurance licence will be issued by Diwali in November.

While a slew of companies, both domestic and foreign, have announced their plans to enter the domestic insurance sector, many are yet to forge a tie-up for entering the sector. The insurance bill, approved by Parliament, allows foreign companies to have a maximum of 26 per cent stake in domestic insurance ventures.