Irdai allows insurers to invest in debt instruments of InvITS and REITS

Securities should not be rated below 'AA' under the "approved investment" category. In case the instrument is subsequently downgraded, it will be part of "other investments"

The insurance regulator on Thursday allowed insurance companies to invest in debt securities of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). Earlier, insurance companies were only allowed to in units of InvITs and REITs. 

This decision has been taken by the Insurance Regulatory and Development Authority of India (Irdai) post the passage of the Finance Bill, which had proposed permitting trusts to issue debt securities. 

The regulator has said, insurers can invest in debt securities of InvITs and REITs that are rated not less than “AA” under the “approved investment” category. In the event of a subsequent