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IRDA may create non-fin holding co structure for insurers

According to the current norms, a subsidiary company cannot hold stake in an insurance company

June 05, 2013 4:10 IST | India Infoline News Service
The Insurance Regulatory and Development Authority (IRDA) on Monday said that it will examine the issues arising out of a non-operating financial holding company (NOFHC), which would be a subsidiary of the promoter company, to hold stake in an insurance company, according to a media report.

According to the current norms, a subsidiary company cannot hold stake in an insurance company.

The new bank license rules, by the Reserve Bank of India (RBI), mention that a company who is a promoter of an insurance company will have to float an NOFHC for engaging in insurance activities. This NOFHC will become a subsidiary of the promoter entity, the report added.

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