Dividend Criteria for Equity Investment under “Approved Investment”

In pursuant to Ref. No: IRDAI/F&I/CIR/INV/216/08/2020, the IRDAI in exercise of the powers conferred under Regulation 14(2) of the IRDAI (Investments) Regulations, 2016 after taking into account the representations made by Life and General Insurance Councils, allowed the insurers to categorize the class of shares into preference and equity respectively and that would be considered as a part of approved investments only if such shares have paid dividend “for at least 2 years out of 3 consecutive years immediately preceding” instead of “for at least 2 consecutive years immediately preceding” (as required under Regulation 3(a)(4) and 3(a)(5) of IRDAI (Investment) Regulations, 2016) for the period from 1st April,2020 to 31st March,2021.

The aforesaid Circular can be accessed here.

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