Investment norms for housing, infra finance firms eased
10 Aug 2013 10:59 PM GMT
Housing finance companies and infrastructure finance companies will get higher funding from the insurance companies as the sector regulator IRDA has relaxed investment norms for these firms.
‘The investments in the debt instruments issued by housing finance companies as specified in the investment regulations shall not be included under the exposure to Financial and Insurance Activities,’ Insurance Regulatory and Development Authority (IRDA) said in a notification.
Presently, it said, such exposure to Housing finance companies and infrastructure finance companies is treated as exposure under Financial and Insurance Activities.
However, the industry exposure limits will continue to apply for such investments, it said. According to anaysts, the measures will help these companies to attract long term funds from insurance companies and help them in overcoming liquidity crunch.
‘The investments in the debt instruments issued by housing finance companies as specified in the investment regulations shall not be included under the exposure to Financial and Insurance Activities,’ Insurance Regulatory and Development Authority (IRDA) said in a notification.
Presently, it said, such exposure to Housing finance companies and infrastructure finance companies is treated as exposure under Financial and Insurance Activities.
However, the industry exposure limits will continue to apply for such investments, it said. According to anaysts, the measures will help these companies to attract long term funds from insurance companies and help them in overcoming liquidity crunch.
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