The Insurance Regulatory Development Authority of India (IRDAI) on January 19, 2023, issued a clarification on the classification of shares issued by virtue of demergers to Insurance Companies.
It is clarified that the dividend criteria as stipulated under Regulation 3(a)(4) and 3(a)(5) of IRDAI (Investment) Regulations, 2016, applicable to the “Demerged Company” shall be reckoned for the purpose of classification of investment, in equity shares and preference shares in Resulting Investee Company(s)”, as “Approved investment” or “Other Investment”, for initial two financial years.
[Notification No. IRDAI/F&I/CIR/INV/20/1/2023]
