The Insurance Regulatory and Development authority of India (IRDAI), in its new draft on investments, said that the equity investments in CNX 200 or BSE 200 can only be considered as approved investments. It further added that approved investments would also include debentures by first charge on immovable property.
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 directory of the insurer.
IRDAI said bonds of 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.
