HDFC Ltd was merged with HDFC Financial institution on July 1, following which debt securities of the housing financier had been transferred to the financial institution.
Insurance coverage firms feared they’d breach funding limits prescribed for the monetary sector after the merger if bonds of HDFC had been categorised underneath that phase.
Bonds of HDFC Ltd will likely be handled as publicity to housing and infrastructure until maturity, the Insurance coverage Regulatory Growth Authority (IRDA) clarified.
IRDA has additionally given insurance coverage firms time until June 30, 2024, to adjust to norms for optimum publicity to a single entity within the case of HDFC Financial institution.
Some insurance coverage firms, which held shares of each HDFC and HDFC Financial institution, could breach these publicity norms.