The Authority under Section 14 (2) (k) of IRDA Act, 1999, issues the following amendment to Master Circular – Investments, 2016, which shall be effective from the date of issue of this Circular:
Investment in Units of “Real Estate Investment Trusts (REIT) Infrastructure Investment Trusts (InvIT)”
1. Insurers can invest in Units of REITs / InvITs which conform to the following:
i. The REIT /InvIT rated not less than “AA”shall form part of Approved Investments. REIT / InvIT rated less than AA shall form part of Other Investments.
ii. An Insurer can invest not more than 3% of the respective fund size of the Insurer (or) not more than 5% of the Units issued by a single REIT / InvIT, whichever is lower.
iii No investment shall be made in REIT /InvIT where the Sponsor is under the Promoter Group of the Insurer
iv. Investment in Units of InvIT will form part of “Infrastructure Investments”, for the purpose of Pattern of Investments under IRDAI (Investment) Regulations
v. Investment in Units of REIT will form part of “Investment property” as per Note 6 to the Regulation 9 of IRDAI (Investment) Regulations, 2016 read along with Master Circular – Investments
2. The Investment in Units of REIT / InvITs shall be valued at Market Value (last Quoted price should not be later than 30 days). Where Market Quote is not available for the last 30 days, the Units shall be valued as per the latest NAV (not more than 6 months old) of the Units published by the trust
| Category | Code | Description |
|---|
| Approved Investments |
| Units of Real Estate Investment | D40 | Units of Real Estate Investment Trust (REITs) – ERIT |
| Units of InvIT | D41 | Units of InvIT – EIIT |
| Other Investments |
| Units of Real Estate Investment | E29 | Units of Real Estate Investment Trust (REITs) – ORIT |
| Units of InvIT | E30 | Units of InvIT – OIIT |
4. The Concurrent Auditor in his Quarterly Report to the Audit Committee / Board of the Insurer shall confirm compliance to the above norms and disclosure requirements.
