IRDAI must review prohibition on investment in AIF investment overseas
April 10, 2021
IRDA has allowed insurance companies to make their investments in FoF
While the Insurance Regulatory and Development Authority of India s (IRDAI) decision to permit insurer’s investments in startups fund of funds is a good move, it needs to review the prohibition on investment in AIFs investing overseas.
According to experts, IRDA should revisit this blanket prohibition in light of the fact that market regulator SEBI permits AIFs to invest up to 25 per cent of the investible funds in overseas securities.
Under applicable insurance laws, an insurance company cannot directly or indirectly invest outside India, and hence IRDA whilst permitting insurer’s investments in FoF has prohibited investment by such an FoF in any AIFs investing overseas.