IRDAI eases norms for investment in infrastructure by insurers

The Insurance Regulatory and Development Authority of India (IRDA) has done away with the current practice of according a case to case basis approval for investments in Infrastructure Development Fund (IDF) by the insurers. 

This will give insurers a free hand to insurers in investing in IDF which is of course subjected to a general set of norms.

“To encourage further investments by insurers in the infrastructure sector and to enhance ease of doing business, the requirement of case to case approval for an investment in IDF is done away with,’‘ the regulator said in a circular on Friday. 

The conditions include registration of IDF-NBFC with RBI, a residual tenure of not less than five years for debt securities and minimum credit rating of `AA’ or its equivalent by a Credit Rating Agency registered with SEBI to be eligible for approved investments.