The group has set up CDS as a special purpose vehicle to distribute financial products which the company offers, a couple of months back.Cholamandalam Investment and Finance Company Ltd managing director M Anandan told The Financial Express that the group has signed an agreement with HDFC-Standard Life for distributing its products nationwide the other day. "We have signed a memorandum of understanding (MoU) with HDFC-Standard Life for distributing their products last week. The process is now up and running," Mr Anandan said.

He said, the insurance regulator, Irda, had earlier granted corporate agent status to the group's newly floated subsidiary, CDS. The staff of the company is now being trained by HDFC-Standard Life as required under the Irda regulation, he added.

The insurance regulator, in a bid to bring in professionalism in the insurance business, has stipulated 100 hours mandatory training for insurance staff in an institute recognised by Irda.

Irda had permitted private corporate houses to make a back door entry into the insurance sector by becoming corporate agent of one of the players in the sector. Corporate agents can distribute the products of the company, with which it has signed a marketing agreement, on a commission or profit sharing basis.

He also said that the company is in an advanced stage of negotiations with a slew of insurance giants for floating a joint venture for the general insurance business. "Talks in this area are in a very advanced stage and we expect to conclude the deal very soon. However, it is not appropriate to reveal the names of these companies now as it is premature," Mr Anandan said.