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Looking at 'alternatives' to complete insurance business merger deal: HDFC

HDFC would merge its life insurance subsidiary HDFC Life with Max Group's insurance business unit.

Press Trust of India  |  New Delhi 


Ltd is looking for an "alternative" route to take forward the process of merging its life subsidiary Life with Max Group's business unit.

The two companies' proposal to merge their units has been rejected by sector regulator Irdai as it involved of an company with a non-firm.

"As you know that there was a problem and the proposal has been turned down by Irdai. But we are looking at alternatives. We now have to look at a different way of doing it," Managing Director Renu Sud Karnad told PTI.

On asked about what exactly would be an alternative way to go ahead with the plan, Karnad said: "We are still discussing, I can only tell that the way it was envisaged it has been turned down and now we are looking at alternatives."

In November last year, IRDAI had expressed reservations on the as it involved amalgamation of Life with the Max group's financial entity, which ultimately holds the life business of the latter.

The amalgamation scheme was supposed to be executed among Max group's Max Financial Services Ltd (MFSL), its subsidiary Max Life Company Ltd (MLIC), Standard Life Company Ltd (Life) and

As per the original plan, was supposed to amalgamate Max Life with Max Financial Services. Subsequently, the business of the merged entity was to be demerged so that it could be transferred to Standard Life Company.

However, the whole scheme did not go down well with the Regulatory and Development Authority of India (Irdai) as it was in contravention of the Section 35 of the Act, 1938 that does not allow of an business with a non-

Standard Life (Life) is a joint venture between India's biggest mortgage lender Ltd and UK's Standard Life.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, July 07 2017. 22:12 IST