IRDAI Proposes Higher REIT, InvIT and Gold ETF Limits
Why in the news
IRDAI suggested changes to insurers’ investment norms to steer long-term funds into real estate, infrastructure and gold-backed assets.
Key facts
| Proposal | Current | Proposed |
|---|---|---|
| REIT and InvIT exposure cap | 3% | 6% (life: own fund size; general: total investment assets) |
| Public float requirement | 30% | 25%, in line with SEBI |
| Gold ETFs in ULIPs | – | Up to 5% of segregated fund assets |
- The gold limit sits within the 15% mutual fund cap; gold returned 30% in the past year and two large life insurers asked for it.
- Kiwi General Insurance (Westbridge Capital-backed) got R1 approval, the first stage towards a general insurance licence.
- Whole-Time Member panels will review share transfers and probe Insurance Act violations.
- IRDAI reviewed the IRBC regime and QIS-1 feedback.
Significance
- Backs the infrastructure push, adds investment flexibility and diversification, and reinforces risk-based supervision.
Exam angle
- REIT = Real Estate Investment Trust; InvIT = Infrastructure Investment Trust.