IRDAI vide Circular Ref. IRDAI/F&I/CIR/INV/20/1/2023 dated January 19, 2022 issued a Circular on Clarification on classification of shares issued by virtue of demerger to Insurance Companies.
The relevant extracts of regulatory prescriptions provided in the circular are attached for the ready.
Clause 1.11 of IRDAI Investment Master Circular dated October 27, 2022 (Dividend Criteria for Equity Investment Under Approved Investment) and Regulation 3(a)(4) and 3(a)(5) of IRDAI (Investment) Regulations, 2016 inter alia provides for dividend criteria for investment in preference and equity shares for consideration as “approved investment” and / or “Other investment”
Clarification issued by the Authority
IRDAI has clarified that “Demerged Company” shall be reckoned for the purpose of classification of investment, in equity shares and preference shares in Resulting Investee Company(s), as “Approved investment” or “Other Investment” for initial two financial years.
Source category: IRDAI
Attachments
- /2023/149_CLARIF~1.PDF
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