New India Assurance Co. enters ICA for exposure to Reliance Home Fin, DHFL

Although NIACL did not specify the extent of exposure to these debt securities, the company has informed the exchanges that they had signed the deed of accession for entering into the ICA.

Oct 04, 2019 10:10 IST India Infoline News Service

Unit-Linked Insurance Plans, ULIPsNew India Assurance Company Ltd. (NIACL) on October 3 said that the company has entered into inter-creditor agreements (ICAs) for debt exposure to debt instruments of Reliance Home Finance and Dewan Housing Finance, the first for any insurance company to take this approach for debt resolution.
Although NIACL did not specify the extent of exposure to these debt securities, the company has informed the exchanges that they had signed the deed of accession for entering into the ICA.

The Insurance Regulatory and Development Authority (IRDAI) allows insurers to be part of ICA to ensure that the insurers are part of the debt resolution process of a troubled firm.

New India Assurance Company Ltd ended at Rs104.10 down by Rs2.25 or 2.12% from its previous closing of Rs106.35 on the BSE.

The scrip opened at Rs106.45 and touched a high and low of Rs108 and Rs102.50 respectively. A total of 28,942 (NSE+BSE) shares were traded on the counter.

The current market cap of the company is Rs17,081.52cr.

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