Insurance regulator IRDAI has clarified that bonds/debentures held by insurers within the erstwhile HDFC beneath the ‘housing and infrastructure’ class as on April 4, 2022, when the merger of the mortgage lender with HDFC Bank was introduced, might be handled as investments in the identical class till maturity of the respective devices.
It additionally exempted the insurers from complying with the one investee fairness publicity norms, beneath IRDAI laws, for particular person segregated fund at SFIN degree with regard to shares of HDFC Bank (post-merger) till June 30, 2024. The exemption will solely be with respect to holdings of the respective insurers as on June 30, 2023, and the identical shall be scaled down to the extent of sale of shares thereafter, the regulator stated in a round.
Insurers had earlier approached IRDAI for a clarification, within the wake of HDFC Bank’s merger with its father or mother, as to whether or not their investments in HDFC bonds would proceed to be labeled beneath ‘housing and infrastructure sector’. They had additionally sought exemption from the one investee fairness publicity limits prescribed for segregated funds of ULIP with respect to investments within the fairness shares of HDFC Bank (post-merger), Ammu Venkata Ramana, General Manager (F&I) at IRDAI, stated within the round.
