Piramal bid for RCap runs into regulatory wall

The Insurance Regulatory Authority of India (Irdai) has raised issues over Piramal Group’s stake in competing insurance coverage corporations, a transfer that would derail its plans to amass Reliance Capital. However, the group has an possibility to scale back its stake inside 18 months, making it compliant to amass the previous Anil Ambani group agency.

A consortium, led by Piramal Group, is among the eight critical contenders for buying RCap’s property, from whom collectors are searching for Rs 23,666 crore in dues.

According to Irdai, an investor can’t individually maintain greater than 10 per cent and collectively greater than 25 per cent of the paid-up fairness share capital in an insurance coverage agency. Piramal Enterprises (PEL) is the holding firm and promoter of Pramerica Life Insurance Company and holds 50 per cent of the agency’s paid-up capital by means of its stake in DHFL Investments.  FE

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