The Insurance Development Regulatory and Authority (Irdai) has written to Reliance Capital's administrator flagging concerns over Piramal Group's bid for the firm, pointing out that the latter already has a promoter stake in a life insurance firm and cannot pick up a similar stake in another life insurer.
With the acquisition of DHFL last year, Piramal Group has a promoter stake in Pramerica Life Insurance, and if it acquires RCap it would also become the promoter of Reliance Nippon Life Insurance.
In the letter dated May 12, Irdai said: "Since Reliance Capital is the holding company and promoter of Reliance Nippon Life Insurance, in case Piramal Group acquires Reliance Nippon Life Insurance company, through its acquisition of Reliance Capital, it will result in it being a promoter of two life insurance companies i.e., Pramerica Life Insurance Company and Reliance Nippon Life Insurance Company. As indicated above, this would be contrary to the regulatory framework in place in the insurance sector".
This story is from the May 27, 2022 edition of Business Standard.
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This story is from the May 27, 2022 edition of Business Standard.
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