Indian regulator guides on sec lending
09 August 2012 New Delhi
Image: Shutterstock
Repo, reverse repo, SLB and credit default swaps have all been addressed by India’s insurance regulator, Insurance Regulatory and Development Authority (IRDA).
The guidelines drafted by the IRDA were issued on 3 August, and are intended to broaden the investment options of the country’s insurance companies, both life and non-life.
The regulator encouraged insurance companies to lend out securities on the National Stock Exchange of India and Bombay Stock Exchange, assuring they would be allowed to lend up to 10 percent of their total equity holdings. IRDA also stated that the board of insurer should amend its risk policy on securities lending and borrowing.
Feedback was asked to be given from the stakeholders within 15 days of the issuance.
The guidelines drafted by the IRDA were issued on 3 August, and are intended to broaden the investment options of the country’s insurance companies, both life and non-life.
The regulator encouraged insurance companies to lend out securities on the National Stock Exchange of India and Bombay Stock Exchange, assuring they would be allowed to lend up to 10 percent of their total equity holdings. IRDA also stated that the board of insurer should amend its risk policy on securities lending and borrowing.
Feedback was asked to be given from the stakeholders within 15 days of the issuance.
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