MANU/IRDA/0031/2015

Authority : Insurance Regulatory and Development Authority

Circular No. : IRDA/F&I/CIR/INV/156/08/2015

Date : 28.08.2015

Notification/ Circulars Referred : Circular No.INV/CIR/020/2008-09 dt.11th November, 2008 MANU/IRDA/0058/2008;Circular No. IRDA/F&I/INV/CIR/213/10/2013 dt. 30th October, 2013 MANU/IRDA/0086/2013

Citing Reference:
Circular No.INV/CIR/020/2008-09 dt.11th November, 2008 MANU/IRDA/0058/2008  Referred

Circular No. IRDA/F&I/INV/CIR/213/10/2013 dt. 30th October, 2013 MANU/IRDA/0086/2013  Referred

The CEOs of all Insurers,

Guidelines on Investment in Exchange Traded Funds with G Sec Underlying (GILT-ETF).

Insurers are permitted to invest in the exhaustive asset classes under the provisions of Insurance Act, 1938, IRDA (Investment) Regulations, 2000, and guidelines issued there under.

GILT-ETF launched in India, has been after due consideration, permitted for Insurers to invest as a part of "Approved Investments".

In line with investments in Mutual Funds under Gilt/G Sec./Liquid categories, subject to conditions prescribed by Cir: INV/GLN/003/2008-09, GILT-ETFs shall fulfil the following additional conditions:

1) The GILT-ETFs shall be issued and managed by the Mutual Funds registered under SEBI (Mutual Funds) Regulations, 1996, as amended from time to time.

2) The object of the GILT-ETFs shall be to invest in a basket of Govt. Securities Actively Traded in the market or constituents' of a publicly available index.

3) The minimum investment by the Insurer shall not be less than Creation Unit size and shall not be reduced at any time below Creation Unit Size and value of Creation Unit Size, at the time of investment, shall not be more than Rs.50 lakhs.

4) The Overall Expense Ratio shall be less than 0.50% of the daily net assets of the scheme.

5) The In........