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The Insurance Regulatory and Development Authority of India (Irdai) has, in its new draft on investments, said the equity investments in CNX 200 or BSE 200 can only be considered as approved investments. It further said other approved instruments for investment would also include debentures by first charge on immovable property.
Approved securities would include preference shares of any company which has paid dividends on its ordinary shares or preference shares of any company on which dividends have been paid.
Rated debentures including bonds along with other secured debt instruments will be considered as approved instruments. In equity shares, preference shares and debt instruments issued by All India Financial Institutions, investment shall be made according to the investment policy guidelines, benchmarks and exposure norms approved by the board of directors of the insurer.
Irdai said bonds or debentures issued by companies, rated not less than AA or its equivalent and A1 or equivalent ratings for short-term bonds, debentures, certificate of deposits and commercial papers by a credit rating agency, registered under Sebi (Credit Rating Agencies) Regulations 1999, would be considered as 'approved Investments'.
On the unit-linked insurance fund, Irdai said that investment in central government securities cannot be less than 25 per cent.
