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Journalism of Courage
In a major boost to the primary markets, the insurance reguator, Insurance Regulatory and Development Authority (IRDA), on Monday eased norms, allowing insurers to invest in big-ticket IPOs of over Rs 500 crore.
In its circular, IRDA, however, stipulated certain conditions for insurers investing in big IPOs. It categorised investment in the IPOs of well-known corporates having good performance track record and sound financial health as “approved investments”.
The size of the equity shares offered through IPOs, including offer for sales, should not be less than Rs 500 crore and the number of shares offered should not be less than five million, IRDA stated.
Investment in equity shares should comply with prudential and exposure norms and details of investments in equity shares through IPOs should be filed with irda within 30 days of investment, it said.
