Home / Companies / News / Piramal Group not eligible to acquire Reliance Capital, says Irdai

Piramal Group not eligible to acquire Reliance Capital, says Irdai

Group has promoter stake in Pramerica Life Insurance

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RCap’s lenders have extended the deadline to submit bids till June 30 as they received a tepid response from prospective bidders, with only eight of the 54 prospective resolution applicants engaging with them

Subrata Panda Dev Chatterjee Mumbai

4 min read Last Updated : May 27 2022 | 6:10 AM IST

The Insurance Regulatory and Development Authority (Irdai) has written to Reliance Capital’s administrator flagging concerns over Piramal Group’s bid for the firm, pointing out that the latter already has a promoter stake in a life insurance firm and cannot pick up a similar stake in another life insurer.

With the acquisition of DHFL last year, Piramal Group has a promoter stake in Pramerica Life Insurance, and if it acquires RCap it would also become the promoter of Reliance Nippon Life Insurance.

In the letter dated May 12, Irdai said: “Since Reliance Capital is the holding company and promoter of Reliance

Topics : IRDAI Reliance Capital Piramal Group Pramerica

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