- 02:15 PM Mahindra Satyam plunges nearly 11%
- 02:09 PM CBI unearths additional fraud of Rs4739cr in Satya...
- 02:01 PM Sundaram BNP Paribas launches PSU fund
- 02:00 PM Expect upside in Mahindra Forgings: Rajen Shah
- 01:57 PM Prefer tyre stocks, says Rajen Shah
- 01:44 PM How to get the best from equity funds
- 01:32 PM Nifty extends gain on positive European cues; suga...
- 01:31 PM Infy to hire 20000 in FY11, says job scene improvi...
- 01:31 PM Above Rs 5115, Nifty can touch Rs 5150: Finquest S...
- 01:30 PM Below Rs 94, Mahindra Satyam can test Rs 85: Bhamb...


The Insurance Regulatory Development Authority has prohibited insurers from investing in Indian Depository Receipts (IDR) as it amounts to indirect overseas investment. The Insurance Act prohibits investment in IDRs. CNBC-TV18's Avni Raja reports.
Also see: Now, easier norms for foreign cos looking to list in India?
Here is a verbatim transcript of Avni Raja’s comments on CNBC-TV18. Also see the accompanying video.
IRDA has right now come with a circular saying that insurers are not allowed to invest in IDRs. That is because Sebi some time back had said that mutual funds would be allowed to invest in IDRs. So in response to that, the regulator has said that insurance companies will not be allowed. Also it’s mentioned in the Insurance Act that the companies are not allowed to invest in an IDR.
So, this is another diversification of risk that insurance companies will lose out on.
Considering that insurers have invested Rs 58,000 crore in the markets last year. They are the biggest investors around, so they will lose out in this another area where there is no level playing field.
|
|
Business
Business News | Economy | Earnings | BSE NSE Notices
General News
Current Affairs | Politics | World News | Sports | Entertainment
Corporate Strategy
Management | Advertising | Marketing | Legal
Personal Finance
Tax | Insurance | Credit Cards | Loans | Property | Retirement | Investment Help | Financial Planning | Fixed Income
Markets
Local Market | Global Market | Market Cues | Analysis | Expert & FII outlook | Brokerage Recomendation
Stocks
Stocks in News | Expert Advice | ADRs & GDRs | IPO
Mutual Funds
News | Advice | MF Analysis | Fund Managers Views
Lifestyle
Travel | Wellness | Technology | Auto| Books
-
Most Read
-
Most Viewed
- 10 Companies that FIIs love
- 10 companies that MF managers love
- Sudarshan Sukhani's top five picks for today's trade

- Expert sector picks to power your portfolio ahead

- Ganeshaspeaks: Market prediction for Nov 25
- Ex-bonus, RIL will see correction: SP Tulsian

- Mitesh Thacker's top 5 picks for trade today

- Mah Satyam looks at out-of-court settlement with creditors
- Mkts to remain strong; bet on midcaps: Ramesh Damani
- Will ITC dream run continue beyond FY10?

- Mahindra may increase car prices due to rising input costs
Source: Business Line
- Renault to continue with M&M for Logan, says Ghosn
Source: Business Line
- Market volatility poses valuation problems: IRDA
Source: Business Line
- Punjab, Haryana buck all-India rice decline trend
Source: Business Line











