Ref: IRDA/F&I/CIR/INVP-03/2011 Date: 30th Aug, 2011
The CEO of all Insurers
Sub: Investment in Venture Funds – Clarification
IRDA, vide circular INV/CIR/008/2008-09 Dt. 30th Jul, 2008 amended Circular INV/CIR/007/2003-04 Dt. 15th Dec, 2003 issued for Insurer’s investment in Venture Funds . Para 8(2) of Annexure II of the said circular requires Venture Fund to invest in Infrastructure Projects as defined under IRDA (Registration of Indian Companies) Regulations, 2000 as amended from time to time.
Circular INV/CIR/007/2003-04 Dt. 15th Dec, 2003, required Insurers to Invest in Venture Fund which would “as far as possible” invests in “Infrastructure Projects” as per IRDA (Registration of Indian Companies) Regulations, 2000. The omission of words “as far as possible” in Para 8(2) of the amended Guidelines, raised doubts among insurers, that the regulations permitted Insurers to invest ‘only’ in those Venture Funds which invest in ‘Infrastructure Projects’ as defined under IRDA (Registration of Indian Companies) Regulations, 2000.
The IRDA, after inviting comments and concerns of Insurers and after a careful consideration of all the submissions made, hereby darify that:
R K NAIR
MEMBER (F & I)