The Insurance Regulatory and Development Authority of India (IRDAI) has expressed concerns about Hinduja Group firm IndusInd International Holdings’ (IIHL) Reliance Capital acquisition, according to PTI, citing sources.
IIHL’s ₹9,650 crore resolution plan to acquire bankrupt Reliance Capital Ltd violates insurance requirements, according to a recent email from IRDAI to Reliance Capital’s administrator, Nageshwara Rao Y. The insurance regulator was also concerned that the debt-ridden company had exceeded its Foreign Direct Investment (FDI) limit.
Previously, IRDAI sought information about IIHL stockholders in connection with the matter. It also sought information on the money that IIHL intends to inject into the debt-ridden insurance company. Furthermore, sources told PTI that the IRDAI has expressed reservations about the debt that IIHL intends to raise to pay the Reliance Capital transaction.
