Insurance Companies Allowed to Invest in Debt Instruments of InvITs and REITs moneylife.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneylife.in Daily Mail and Mail on Sunday newspapers.
The insurance regulator on Thursday allowed insurance companies to invest in debt securities of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). Earlier, insurance companies were only allowed to in units of InvITs and REITs. This decision has been taken by the Insurance Regulatory and Development Authority of India (Irdai) post the passage of the Finance Bill, which had proposed permitting trusts to issue debt securities. The regulator has said, insurers can invest in debt securities of InvITs and REITs that are rated not less than “AA” under the “approved investment” category. In the event of a subsequent downgrade, the instrument will become part of their “other investments”.
The Reserve Bank of India (RBI) on Tuesday said all over-the-counter credit default swaps (OTC-CDS) transactions should be reported within 30 minutes of the transactions to the trade repository, clearly marking the purpose of the transaction, whether it’s for hedging or not. The trade repository will be run by the Clearing Corporation of India Ltd. (CCIL). In case a market participant assigns a CDS contract to any other market participant, the market-maker in the assigned contract shall report such assignment to the trade repository of CCIL, the RBI said in a draft guideline on CDS released on its website. Participants in the credit derivatives market will be obliged to furnish any information relating to credit derivatives transactions to the Reserve Bank or any other agency as may be specified by the RBI.