Relaxation for insurers’ investments in HDFC Ltd. post merger with HDFC Bank Ltd.
- In view of the merger of HDFC Ltd with HDFC Bank Ltd, insurers have requested IRDAI to:
i) allow investments in HDFC Ltd bonds to be continued to be classified under Housing and Infrastructure sector;
ii) exempt the single investee equity exposure limits prescribed for segregated funds of ULIP with respect to investments in the equity shares of HDFC Bank Ltd (postmerger).
- In view of the above, it is hereby clarified that the bonds/debentures held by the insurers in the HDFC Ltd on the date of announcement of the merger i.e. 4th April, 2022 under the category “Housing and Infrastructure” shall be treated as investments in the said category till the maturity of the respective bonds of HDFC Ltd.
- Further the insurers are exempted from complying with the single investee equity exposure norms prescribed under Regulation 9B of IRDAI (Investment) Regulations, 2016 read with Regulation 7(a) IRDAI (Investment) Regulations,2016, for individual segregated fund at SFIN level with respect to shares of HDFC Bank Ltd (post-merger) till 30th June,2024. The said exemption shall only be with respect to holdings of the respective insurers as on 30.06.2023 and the same shall be scaled down to the extent of sale of shares thereafter.
This circular is issued under Regulation 17 of IRDAI (Investment) Regulations, 2016
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