Irdai asks insurers to sell their holdings in Tata Sons promptly

The regulator has also rejected an alternative proposal made by the companies

The insurance regulator has asked insurers to sell their holdings in Tata Sons promptly. The instruction could take out more than Rs 80 billion of investments made by these companies in the holding company of India’s largest business group.

The Insurance Regulatory and Development Authority of India’s (Irdai’s) instruction is based on a reading of the Insurance Act of 1938. The Act forbids insurance companies from having stake in unlisted companies.

While Tata Sons had switched its status from a public limited company to a private entity last year in the wake of the spat in the group between Ratan Tata and