MANU/IRDA/0086/2013

Authority : Insurance Regulatory and Development Authority

Circular No. : IRDA/F&I/INV/CIR/213/10/2013

Date : 30.10.2013

Notification/ Circulars Referred : IRDA/F&I/CIR/INV/067/04/2013 Dated 1st April, 2013 MANU/IRDA/0052/2013;Circular no. INV/CIR/08/2008-09 dated 22nd August, 2008 MANU/IRDA/0044/2008;Circular no. INV/CIR/020/2008-09 dated 11th November, 2008 MANU/IRDA/0058/2008

Citing Reference:
IRDA/F&I/CIR/INV/067/04/2013 Dated 1st April, 2013 MANU/IRDA/0052/2013  Referred

Circular no. INV/CIR/08/2008-09 dated 22nd August, 2008 MANU/IRDA/0044/2008  Referred

Circular no. INV/CIR/020/2008-09 dated 11th November, 2008 MANU/IRDA/0058/2008  Referred

The CEOs of all insurers,

Clarifications on IRDA (Investment) Regulations, 2000, Circulars and Guidelines and Misc. Matters related to Investment Regulations

The Fifth amendment to the IRDA (Investment) Regulations, 2000 was gazetted vide notification dated 16th February, 2013 and subsequently a circular no. IRDA/F&I/CIR/INV/067/04/2013 Dated 1st April, 2013 was issued regarding key changes in the said amendments. Post issuance of amended regulations and said circular, there have been a number of representations from the Insurers on different issues seeking clarification and exemptions from the applicability of the provisions. Further, feedback has also been received from Insurers and the Life Council on miscellaneous issues on policy matters. After careful examination of these representations, it is decided to issue the following clarifications:

A. Clarifications on IRDA (Investment) Regulations, 2000, Circulars & Guidelines

1. Thinly Traded Equity:

The declaration vide clause VI (B) (11) of Form 4 from the CEO/CFO/CIO on quarterly basis on the thinly traded equity is not in line with the regulation Note 6 to Reg. 9 of Investment Regulations. Accordingly, the declaration shall be read as "Whether investments in equity shares listed on a recognised stock exchange are made in actively traded and liquid instruments?"

2. Restraining the Fixed Deposit with Promoter Group Banks