Irdai proposes allowing insurers to invest in unlisted companies

Easier access to funds would help lift the mood in a startup sector that has been hit by the global tech market rout

India's insurance regulator has proposed to the government that insurers be allowed to buy over 10% of unlisted firms without approval, regulatory and industry sources said, a move that could unlock new funding avenues for startups in Asia's third largest economy.

Currently, Insurance Regulatory and Development Authority of India (IRDAI) does not allow insurers to invest in unlisted entities without its permission.

IRDAI has sent a proposal to the government to allow buying a more than 10% stake in unlisted firms by insurers, using over 10% of the monies lying in their shareholders fund, policyholders fund, or funds maintained by