IRDAI has increased scrutiny on the ultimate beneficiaries in the transfer of shares within the insurance broking sector. This increased diligence has led to an extension in the approval timelines, with the three-four month period stretching (on average) to beyond nine months.
The sale of Aditya Birla Insurance Brokers to Samara Capital, filed in March, is currently awaiting approval from the IRDAI.
The regulator, in this particular case, is seeking specific information regarding the general partners (GPs) backing Samara Capital, said two sources. In March, Aditya Birla Capital had approved sale of 50% share capital in its insurance broking business to Edme Services, part of Samara Capital group, an affiliate of Samara Alternate Investment Fund, for 455 crore. The insurance broking business is providing advisory services to companies, individuals and reinsurance solutions to insurance companies.
