IRDA examining tweaking cap on infra investment
Last Updated : 10 Sep 2010
NEW DELHI: Insurance regulator IRDA today said it is examining a proposal for removing cap on investment in infrastructure bonds of highly-rated companies by insurers, a move which would up fund flow in the crucial sector."We are examining the proposal ... There is a request to that extent which has come. We are analysing that," IRDA Chairman J Hari Narayan told reporters on the sidelines of a CII Health Insurance Summit.The current regulations allow insurance companies to invest only in highest rated 'AAA' or 'AA' credit-rated debt paper. Also, at least 75 per cent of investment for every fund in debt instruments in the case of life insurers.For general insurance companies, the investment assets of general insurers should have a 'AAA' rating."We do not see any need for changing the current rules.