Enforcement of share pledging in Reliance General null & void: Irdai

Reliance Capital believes that the order by Irdai will protect the interest of all lenders and debenture holders of the company.

The Insurance Regulatory and Development Authority of India (Irdai) has cancelled the invocation of pledge and transfer of shares of Reliance General Insurance by the trustee as “null and void”, Reliance Capital (RCap) informed the stock exchanges.
 
Earlier, on November 19, RCap announced that the company’s shareholding in its wholly owned subsidiary, Reliance General Insurance Company has been transferred to IDBI Trustee Services, upon invocation of pledge by the trustee.
 
RCap had alleged that the trustee acted on behalf of two parties — Credit Suisse and Nippon MF — claiming against the company under certain guarantees, while another