Indian regulator guides on repo 09 August 2012New Delhi Reporter: Georgina Lavers
Image: Shutterstock
Repo, reverse repo, SLB and credit default swaps have all been addressed by India’s insurance regulator, Insurance Regulatory and Development Authority (IRDA).
The guidelines drafted by the IRDA were issued on 3 August, and are intended to broaden the investment options of the country’s insurance companies, both life and non-life.
The IRDA stated that the exposure of life insurance companies to reverse repo transactions in corporate debt securities should not surpass 10 percent of the controlled fund and up to 10 percent of the fund size.
Regarding non-life, exposure of should not surpass 10 percent of the investment assets. In addition, reverse repo transactions will only be allowed in AAA-rated corporate debt securities.
Feedback was asked to be given from the stakeholders within 15 days of the issuance.
NO FEE, NO RISK 100% ON RETURNSIf you invest in only one asset servicing news source this
year, make sure it is your free subscription to Asset Servicing Times
Image: Shutterstock 