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Informist, Thursday, Dec. 18, 2025

 

NEW DELHI – The Insurance Regulatory and Development Authority of India has proposed to ease norms for insurance companies to invest in special purpose vehicles engaged in the infrastructure sector. "Considering the growth of the infrastructure sector in India and as part of continuous regulatory initiatives, it is proposed to facilitate investment norms for investments in SPVs engaged in the infrastructure sector where the project has commenced commercial operation and cash flow has stabilised, without requirements of parent company guarantee or parent company's networth and rating," the regulator said Thursday. 

 

IRDAI has proposed to allow insurers to invest a maximum 20% of the debt issued by public limited special purpose vehicles engaged in the infrastructure sector and where the project has commenced commercial operation and cash flows have stabilised. Such investment may be allowed provided the proceeds of the issue are utilised to refinance the existing debt of the special purpose vehicle and the debt or loan is treated as standard in the books of the lender. The debt issued should also have a minimum credit rating of AA, the regulator proposed.

 

IRDAI has invited comments on the proposed provision within 21 days. The regulator's proposal comes a day after the Parliament passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, which makes way for raising the foreign direct investment limit in the insurance sector to 100% from 74%.  End

 

Reported by Shubham Rana

Edited by Saji George Titus

 

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