IRDAI to Relax Rules for Insurance Investment in REITs, InvITs
The insurance regulator is currently reviewing a proposal to relax investment regulations for real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). This comes in response to strong investor interest in recent infrastructure offerings, such as the ₹6,000 crore Raajmarg InvIT issue launched in March, which has amplified the call for increased insurer involvement in long-term yield assets. Currently, insurers are limited to a maximum of 3% investments in both REITs and InvITs. The Insurance Regulatory and Development Authority (IRDAI) is considering a proposal that would raise the combined exposure limit to 6%, permitting insurers to allocate investments across…