IRDAI vide its circular bearing no. IRDAI/F&I/CIR/INV/155/8/2023 dated August 04, 2023 has clarified the following, pertaining to status of investments made by insurers in Hdfc Ltd., consequent to merger of Hdfc Ltd. with Hdfc Bank Ltd.:
1. The insurers shall continue to treat the bonds/debentures held in HDFC Ltd (on the date of announcement of merger- April 04, 2022) under the category of “Housing and Infrastructure” till their maturity.
2. Insurers are exempted from complying with the “ single investee equity exposure norms ” * against shares of HDFC Bank Ltd (post merger- till June 30, 2024), for individual segregated funds at SFIN level. However, it is important to note that exemption is applicable with respect to the holdings of the Insurers as on June 30, 2023 which shall be scaled down to the extent of sale of shares thereafter.
Note:
This notification has been issued by IRDAI conceding to the request made by the Insurers to this effect.
Reference:
* Single investee equity exposure norms under Regulation 9B and 7(a) of the IRDAI (Investment) Regulations, 2016.
Source category: IRDAI
Attachments
- /2023/241_IRDAI_(Investment)_Regulations,_2016.pdf
- /2023/241_Relaxation_for_insurers’_investments_in_HDFC_Ltd__post_merger_with_HDFC_Bank_Ltd.pdf
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