IRDAI measures for promoting ease of Investments in Infrastructure Debt Funds – NBFCs by insurers

IRDAI vide circular dated 05.01.2024 has issued measure for promoting ease of Investments in Infrastructure Debt Funds – NBFCs by insurers. To encourage further investments by insurers in the infrastructure sector and to enhance ease of doing business, the requirement of case to case approval for an investment in an IDF is done away with. Insurers are allowed to make investments in IDF-NBFCs which will be reckoned as infrastructure investments, subject to the following conditions:

1. IDF-NBFC is registered with RBI.
2. Debt securities shall have residual tenure of not less than 5 years.
3. Minimum Credit Rating of AA or its equivalent by a Credit Rating Agency registered with SEBI to be eligible for approved investments.
4. Exposure norms as per Note 3 of Regulation 9 of IRDAI (investment) Regulations, 2016 shall be applicable.