February 18, 2008

The CEOs of All Insurers

Dear Sir,

Gazette Notification – IRDA (Registration of Indian Insurance Companies) (Second Amendment) Regulations, 2008

IRDA (Registration of Indian Insurance Companies) (Second Amendment) Regulations, 2008: Currently the IRDA (Investment) Regulations, 2000 mandate investment in Infrastructure Sector, both from Life and General Insurance Companies. Compliance with the requirement is made with reference to insurer’s investments in “Infrastructure related entities” as defined in the IRDA (Registration of Indian Insurance Companies) Regulations, 2000.

The definition of “Infrastructure” by RBI and IRDA are by and large similar in intent with some minor difference. However, in the context of the report of the Deepak Parekh Committee set-up to examine the steps needed to enlarge flow of institutional funds to infrastructure, it has been decided by IRDA to harmonize the definition of “Infrastructure” to bring it in alignment with RBI definition.

The revised definition of “Infrastructure” in IRDA (Registration of Indian Insurance Companies) Regulations, 2000 has been approved by the Insurance Advisory Committee. The copy of the Gazette Notification is enclosed.

Yours faithfully,

/Sd-
(C. R. Muralidharan)
Member