Irdai hikes insurers' exposure to financial and insurance activities up to 30%

Insurance regulator Irdai Friday allowed insurance companies to have exposure to financial and insurance activities up to 30%, effectively raising the sectoral cap limit for investments.Premium
Insurance regulator Irdai Friday allowed insurance companies to have exposure to financial and insurance activities up to 30%, effectively raising the sectoral cap limit for investments.
 1 min read . Updated: 29 Apr 2022, 01:32 PM IST Livemint

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Insurance regulator Irdai Friday allowed insurance companies to have exposure to financial and insurance activities up to 30%, effectively raising the sectoral cap limit for investments.

The hike in sectoral cap limit could be positive news for insurance and banking stocks. 

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"The Authority in exercise of its powers conferred under Regulation 14(2) of the IRDAI (Investment) Regulations, 2016, permits all Insurers to have exposure to Financial and Insurance activities (as per section K of NIC classification) up to 30% of Investment assets. Accordingly, the limit of 25% of Investment Assets mentioned in Note no. 8 to Reg.9 of IRDAI (Investment) Regulations, 2016 stands revised to a limit of 30% of Investment Assets," Irdai said in a circular.

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