IRDAI vide Circular ref. no. IRDAI/F&I/INV/CIR/027/01/2023, dated January 31, 2023 has issued clarifications on miscellaneous matters relating to the Master Circular on investment issued by the IRDAI dated October 27, 2022.
Major highlights of the Circular are as follows:
Investment in Mutual Funds – At any point of time, investment in any single Mutual Fund shall not exceed 20% of the total investments in Mutual Funds (all taken together).
Clarification –
i. The Clause shall be applicable from 1 st April, 2023
ii. The threshold limit of 20% for each Mutual Fund shall include investment in Exchange Traded Fund (ETF) also
2. Investments in AIF: Insurers are not permitted to invest in in AIFs where rights attached to units are varied.
Clarification – Insurers are not permitted to invest in any scheme of AIFs that have a priority distribution model wherein such AIFs have adopted a distribution waterfall in such a way that may lead to share of losses more than pro-rata to their holding, compared to other investors belonging to the same class.
Source category: IRDAI
Attachments
- /2023/152_CLARIF~11.PDF
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